“Well, you must be from the city; ‘Cause you sure ain’t from round here; There ain’t no smoke free section… We don’t sell no import beer.” - “When in Rome” as performed by Travis Tritt
The U.S. trade deficit with China reached an all-time high of $419 billion last year. That’s a little less than half of our overall $891 billion total trade deficit.
In an effort to reduce the trade deficit, last September we imposed tariffs on hundreds of billions of dollars of Chinese merchandise and certain imports from other countries as well. China and other trade partners like Mexico and the EU responded by laying tariffs on a smaller but still significant amount of U.S. products. We briefly considered escalating tariffs but action was delayed as negotiations proceeded.
Some domestic industries have been damaged more than others by our new tariff policy. Farmers, for instance, are hurting badly as a result of freshly imposed retaliatory tariffs. As Iowa Senator Chuck Grassley wrote recently in the Wall Street Journal: “Mexican tariffs on U.S. pork…have lowered the value of live hogs by $12 an animal. Iowa is the top pork-producing state in the country. That means jobs, wages and communities are hurt every day these tariffs continue….”