Saturday, June 9, 2018

Free trade

The meeting of the G-7 countries was mostly about trade and Trumps answer is that all import taxes and subsidies be removed and we will then have true free trade. Germany for example has a $300 billion dollar trade surplus and they are not interested in free trade. Understand that this money goes to the government. It is a tax on imports (goods and services) and that raises the prices that consumers pay and that money goes to the federal government. Germany has a budget surplus of $60 billion but without their trade surplus they would have a budget deficit of $240 billion. They want to maintain the status quo because that puts Germany first. Trump wants free trade because that would put America first. Getting rid of subsidies is also part of Trumps plan. The Chinese government subsidizes their steel industry and they can dump steel on the world market which puts competitors out of business.

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