[oincobx]

A widening trade deficit would drag on growth in the third quarter after a narrower gap -- partly on higher soybean exports ahead of Chinese levies -- helped boost the pace of expansion in the prior period to the fastest since 2014. Net exports added 1.17 percentage point to GDP growth in the April-June period, the most since 2013. That helped GDP grow at a 4.2% annualized pace, the best in almost four years. Analysts see the reverse happening on trade in the third quarter.

[PGR88]

Trade flows are very long-term phenomena. Corporate buyers have extensive supply-lines and contacts which don’t change overnight.

Trump has given American business, the world, (and especially China) warning. This unequal situation, which has been going on for 30 years, but is now becoming critical and strategic, will change.

[Alberta's Child]

This shouldn't be a surprise. The U.S. imposed billions of dollars in tariffs on foreign products and materials. It's not like we have the capacity to produce all of those things right here, and right now. So the price of imports goes up and the volume of imports doesn't change dramatically. That's a recipe for a growing trade deficit right there.

[ckilmer]

One interesting thing to note is that until the income tax was instituted in the first years of the 20th century—the federal government got their revenues from tarriffs on foreign goods shipped into the USA.

Trump fully plans to impose tarriffs on 200 billion in chinese goods this week or next.

I wonder how much revenue that will bring to the federal government.