Published: Sat, March 10, 2018
Global | By Enrique Rogers

United States trade gap rises to $56.6B, highest since 2008

United States trade gap rises to $56.6B, highest since 2008

The comments by Ministry of External Affairs spokesperson Raveesh Kumar came a day after Chinese foreign minister Wang Yi in Beijing said India and China should shed suspicion and manage differences by meeting halfway, suggesting toning down of tough Chinese posture against New Delhi after the tense Doklam standoff.

The trade gap has continued to rise since Trump entered the White House partly because the US economy is strong and American consumers have an appetite for imported products and the confidence to buy them.

China does not want a trade war, but it will respond in event of a rise in tariffs that harm its interests.

Trump is also considering potential trade sanctions against China under a "section 301" investigation into its intellectual property practices and pressure on foreign companies for technology transfers.

Last week, Trump said "trade wars are good, and easy to win" when the U.S.is losing billions on trade. "We can not allow this to happen as it has for many years!"

Trump appeared to have bungled in the tweet, as he does all too often.

While many act as if Trump's actions will start a massive trade war that will destroy the United States and the world economy, they ignore the fact that doing nothing to punish unfair trade will hurt the world economy.

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She will need to be, and a better thrower as well, and this win ought to at least help in the first of those two areas. Her confidence has been given a jab now that she knows she is able to again foot it with the best.

But this is not how Foreign Minister Wang perceives the matter as it now stands considering that China today is in a much better position to help resolve various regional and global issues, such as the South China Sea disputes, and is ready to play its part, which accords with worldwide anticipation.

Trump's tweets follow China's moves to resolve the simmering trade tensions.

When Liu He, a senior Chinese official involved in shaping Beijing's economic policies, visited Washington last week to discuss bilateral trade with U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn. "But there are few alternative sources for the main products the USA buys from China", the research firm said in a note on Wednesday.

"The lessons of history show engaging in a trade war is never the right way to resolve problems", said foreign minister Wang. He mistakenly referred to a deficit where China runs a surplus.

Major Asian nations reacted sharply to U.S. President Donald Trump's decision to impose tariffs on steel and aluminium imports on Friday, warning of damage to relations amid industry calls for retaliation.

A senior South Korean official said the tariffs would impact the renegotiation of the bilateral free trade deal with the United States that is now underway.

February's surplus did edge downwards from the $21.9 billion recorded in January and $25.6 billion from December.

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