The United States has for years an imbalanced trade policy and is now experiencing the ramifications of such trade agreements, according to President Donald Trump. The United States’ Trade Deficit has hit the highest amount in five years. Some suspect the high in the deficit is due to increasing oil import prices and a lack of export deals that directly benefit the United States and reliance on foreign oil.
President Trump points blame at faulty trade deals
One of the platforms President Trump ran on was to make trade deals that would benefit the United States.
The current president claims that unequal import and export deals are to blame for slow economic growth and an increasing trade deficit.
President Trump seeks to remedy this issue by pulling out of trade organizations he says are biased against the interests of the United States. One such institution is the World Trade Organization. The WTO was established after WWII as an attempt to offer a forum for negotiations and peaceful resolutions to international trading disputes. Treaties proposed and signed during The United States’ membership of the WTO are some of what President Trump’s administration takes issue with.
Oil is the culprit
Increased international import oil prices are partly to blame for the United States’ trade deficit.
Some experts points, based on oil price increases, as evidence that the United States needs to become more innovative in its approach to energy independence. The Trump administration also believes that access to oil reserve located within the borders of the United States unequal import concerns for the United States. is equally important ventures to invest and capitalize on.
Although oil is not the only
Cars and phones
Cell phones and vehicles are also culprits in the unbalanced trading issues the United States is experiencing. Technology and vehicles are two other major imported products. President Trump’s administration seeks to encourage more tech growth as well as re-establish American concept of the Motor City.
Plans to stem the import of steel from China and increase steel manufacturing in the United States are in the works. Plans to lower environmental regulations could help increase business interest in technological manufacturing in the United States also. President Trump during his 2016 campaign cited increased environmental regulation for the poor economic growth and a steadily increasing trade deficit.
