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Trump’s China tariffs massively backfire as trade deficit smashes record high

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President Donald Trump regularly cites the United States’ massive trade deficit with China as a primary justification for his decision to implement tariffs.

However, the Washington Post reports that the United States’ trade deficit with China has only widened since the implementation of tariffs and hit a record-high $34.1 billion, according to Chinese statistics released this week.

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“It’s obvious that the immediate effects of the trade war are the exact opposite of what the Trump administration had been planning,” Andrew Polk of Beijing-based research firm Trivium China tells the Post. “We expect the dynamic to change once we get a bit deeper into this, but for now China is trying to outrun the next round of tariffs.”

Julian Evans-Pritchard, an economist at Capital Economics, tells the Post that one reason that China has been able to beat Trump’s tariffs so far is that its currency value has depreciated by more than eight percent since June, which has helped make its products even cheaper abroad, while also reducing domestic demand for U.S. imports.

And Huo Jianguo, a trade expert at the Center for China and Globalization in Beijing, tells the Post that Trump might want to rethink his trade strategy when he sees that the trade deficit with China has only widened under his watch.

“He won’t be happy with these figures but it proves that tariffs don’t help curb exports,” he said.

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



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Texas governor busted sending racist call-to-arms a day before El Paso attack: ‘take matters into our own hands’

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On Thursday, Gov. Greg Abbott (R-TX) tweeted out a message of unity and promised to work to reduce violence in his state, in the wake of the shooting in El Paso that left 22 dead and dozens more injured:

Today we had hearings responding to the tragic shooting in El Paso.

We focused on community healing, combating domestic terrorism, reducing hateful ideologies, & keeping guns out of hands of deranged killers while respecting 2nd Amendment rights.

We’ll keep TX safe.#txlege pic.twitter.com/ymct4aiSgK

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Facebook bans far-right website from pro-Trump advertising after they try to skirt transparency rules

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On Thursday, NBC News reported that Facebook has banned the Epoch Times from placing political advertisements, after the right-wing website tried to conceal its multimillion-dollar dark money streams and get around the social network's political advertising transparency rules in its propaganda supporting President Donald Trump.

The Epoch Times had tried to skirt rules by running ads under puppet names like "Honest Paper" and "Pure American Journalism," confusing users about who was really behind the ads.

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GOP leaders are pressuring Kansas Republican to resign from Congress immediately: report

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On Thursday, the Topeka Capital-Journal reported that Republicans in Kansas and Washington are pressuring Rep. Steve Watkins (R-KS) to step down after just eight months in office.

It is currently unclear why they are calling for his resignation.

Watkins has thus far given no indications he will leave office. His spokesman Jim Joice stated that he has no plans to resign, and disputed the idea that Republican officials are pressuring him to do so, but acknowledged there have been conversations around the topic.

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