Trump’s problems here and abroad
From North Korea to the Russian investigations, the challenges persist
trade deficit fell sharply in February compared with the previous month.
The gap between U.S. imports and exports dropped to $43.6 billion in February, down from $48.2 in January.
The reason: U.S. products exported to our trading partners rose because their consumers bought more made-in-America goods, cars and other products.
The government data released this week also revealed the our trade deficit with China sharply declined to $23 billion in February, as imports from China fell by a record $8.6 billion.
The clear lesson learned here is that a stronger global economy will result in more sales for American producers.
But Mr. Trump faces other hurdles in his efforts to lower the trade deficit even further. “Despite vows to bring it down, it’s unlikely that the new administration’s policies will be able to alter the course of the trade balance, which is buttressed by the high dollar and comparatively strong U.S. demand vis-a-vis the rest of the world,” says Michael Dolega, a senior economist for TD Economics.
But clearly the biggest challenge Mr. Trump faces in the months to come is North Korea which test launched another medium-range ballistic missile on Wednesday.
That, most assuredly, will be the chief issue that he will discuss with Chinese President Xi Jinping this weekend.
“We have a big problem… and that’s going to be my responsibility,” Mr. Trump said of North Korea in a news conference Wednesday in the White House Rose Garden.
And it’s only going to get bigger, much bigger. National security experts say that the Communist regime is likely to develop a long-range nuclear missile with the capability of reaching the U.S. before Mr. Trump leaves office.