Thursday, May 4, 2017

Trade deficit with Mexico grew to record levels with Trump

The Department of Commerce revealed today that the trade deficit with Mexico increased from February to March, 2017, the first two full months with donald Trump in the presidency. From the Commerce Department press release on the subject:

The trade deficit with Mexico and Japan was found to be growing at an alarming rate following the release of March 2017 U.S. International Trade in Goods and Services monthly data by the Department of Commerce.

The trade deficit increased by $363 million with Mexico and by $1.6 billion with Japan from February to March of this year.

Two things:

1. According to Mexican newspaper Reforma, the trade deficit with Mexico is actually the biggest in history with an increase of 30.1%.

2. The reason for the increase, according to experts cited by the newspaper, is because Trump's talk about closing the borders to trade, which may have made companies accelerate their exports into the US. In other words, the reason why there's an increase in the trade deficit with Mexico is Donald Trump.

And now the Trump administration the deficit growth is unsustainable. Well, don't worry; after 2020, when Trump loses the presidency, the trade levels will go back to normal.



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