Who is winning in the trade war between Trump and China?


After a battery of very aggressive tariff measures by the Trump administration (with its subsequent response by China), the first setback comes from the fact that the US trade deficit widened last June. But what is really significant is that it has done so by reversing the most recent short-term trend, since the previous four months had been reducing.

Logically, this trade deficit has increased because imports from the US have increased (0.6%), and the value of their exports has decreased (0.7%). And also the increase in the negative balance has been of 7.3% to 46.300 million dollars, according to data published by the Department of Commerce. Among the most affected exports are those of automotive and consumer products.

Focusing on the specific case of the US-China trade deficit, it remained stable in the vicinity of 32,000 million dollars. Now the bad data becomes even more accurate than before, and the first data point to an undeniable ineffectiveness of the new commercial policy deployed by the White House according to the purpose for which it was designed: return the trade balance with China to a few more  favorable figures for the United States.


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