Question

Should the U.S. prioritize lowering the trade deficit? Why or why not?

Answer 1

US trade deficit is close to $ 621 Billion and US maintain largest trade deficit of $ 420 billion with China. These figures show that US government needs to control such mammoth level of deficit. it might snowball into crisis. Thus, timely actions must be taken by the government to reduce trade deficit.

Government has imposed tariffs on chinese products, but such actions have caused rise in prices of domestic products. Consumers are being penalised in form of higher prices. Here, instead of following incessant tariffs policies, Government must make export competitive. Export can go long way in helping to reduce trade deficit. Further, Trade was with china can be justified to some extent. China is keeping its currency artificially low, so it must be pressurised to follow market forces.