I’m Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at changes in trade. Mike, although the trade war with China may be thawing, tariffs on Chinese imports are still four times higher than they were two years ago. Has this situation impacted U.S. international trade?
Mike: Summary Answer
- Despite the trade war, China still remains our largest trading partner
- Still, the tariffs have narrowed our trade deficit with China, as might expect
- What is interesting, however, is our overall trade deficit with all countries has continued to expand, including a much larger trade deficit with Mexico
- Suggests it is very hard to change trade patterns
- Hear many examples of companies buying less from China but then shifting purchases to other countries, like Vietnam or Indonesia
- Suggests the continuing benefits of international trade
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.