ECONOMY/TAXES/TRADE DEALS/TRUMP AS PRESIDENT: “Among President Donald Trump’s most deeply held economic convictions is that trade deficits are bad, yet his signature economic policy—a major tax cut—likely will deepen the trade deficits he abhors for years to come. For now, that’s more a problem of optics than economics, albeit one that may prompt Mr. Trump to dial up trade tensions with other countries. But in the long run wider trade deficits will make Americans poorer. That’s not because foreigners are stealing American jobs, as Mr. Trump often contends. Rather, it’s because Americans will increasingly borrow from foreigners to sustain their standard of living. Paying them back will wipe out a sizable chunk of the tax cut’s benefit.”
-Greg Ip,”How the Tax Cut President Trump Loves Will Deepen Trade Deficits He Hates,” The Wall Street Journal, April 18, 2018 11:33 am