Trump’s tough talk on trade is a win for USA
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President Donald Trump’s tough talk on trade delivers big wins for America.
In July, European Union Commission President Jean-Claude Juncker agreed to move toward a zero tariff relationship with the U.S., reduce other trade barriers, and increase trade in services, chemicals, pharmaceuticals, medical products and soybeans.
This agreement will do much to help offset retaliatory tariffs from China.
President Trump said “tremendous strides” were made during their meeting, all in an effort to level the playing field between the U.S. and European trading partners. Immediately after the news hit, the Dow Jones Industrial Average surged more than 150 points.
For President Trump’s supporters, the good news wasn’t a surprise. They know full well that their commanderin-chief not only talks tough but walks tough and keeps his word. He is simply keeping his campaign promise to make America rich again.
For years, the EU has abused the U.S. when it comes to trade. In 2015, the United States had a $121.9 billion trade deficit with the EU, and the annual deficit has remained relatively the same since then. Our country runs a trade deficit with four major European countries in the EU.
Unfair tariffs and trade restrictions make it nearly impossible for American goods to enter Europe, while open and free trade encourages European businesses to take advantage of the U.S. marketplace.
For instance, as President Trump constantly points out, it’s not fair that U.S. cars and car parts are subject to a 10 percent EU tariff, while European cars can enter the U.S. virtually free of charge.
Why does all this matter? Because trade deficits continue to have negative and concentrated impacts on the quantity and quality of jobs in small town America where manufacturing employment diminished under the past three administrations.
Of course, the ultimate goal is to have no tariffs. President Trump is striving for a global marketplace removed from all subsidies and barriers that harm the U.S. economy.
President Trump’s courage in tackling the issue is merely a necessary response to other presidents’ weakness in handling the issue.
U.S. trade imbalances started decades ago and have only gotten worse in recent years. It doesn’t take a genius to understand that when a country allows for a trade deficit to grow, the negative consequences can stifle economic growth and stability.
If imports begin to outweigh exports, domestic jobs are inevitably lost abroad. My family, along with many other families in the Pittsburgh area, are all too familiar with the job loss resulting from years of bad trade practices.
According to one report, a study found that imbalanced trade led to the loss of more than 2 million U.S. jobs between 1991 and 2011, nearly half of which were in manufacturing.
President Trump is the first president in nearly 40 years to actually change this tragic trajectory.
You wouldn’t think this was a problem if you listen to those in Washington, however. At nearly every turn, establishment Republicans and Democrats alike criticize and demean President Trump’s plan to bring money stolen by the EU back to our country.
David Urban is a CNN commentator.
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