Why is the Us im­pos­ing tar­iffs?

Perfect Sourcing - - Cover Story -

The root of the prob­lem for Trump with Canada and Mex­ico stems from the North Amer­i­can Free Trade Agree­ment (Nafta), signed in 1994, which the pres­i­dent has called a “disaster” and “one of the worst deals any­body in history has ever en­tered into”. The White House wants to rene­go­ti­ate the terms of Nafta and is us­ing im­port tar­iffs to ap­ply pres­sure.

When it comes to China, Trump be­lieves Bei­jing is us­ing “un­fair” trade prac­tices to gain an ad­van­tage on the US, in­clud­ing lax ob­ser­va­tion of in­tel­lec­tual prop­erty law. The pres­i­dent also takes is­sue with the size of the US trade deficit with China. Some econ­o­mists ques­tion the ac­cu­racy of the of­fi­cial fig­ures, yet the US Cen­sus Bureau shows Amer­ica bought $376bn more of Chi­nese goods than the to­tal value of all US goods sold in the Asian coun­try last year.

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