What country is America’s biggest trading partner?
Critical Analysis
Find answers to the following questions using the visual above, any links below, your big brain, and your knowledge of American government and politics:
The United States is the world’s biggest goods importer, that means it buys more stuff (goods and services) than any other country. According to the visual above, how much money (in Trillions!) did the U.S. spend on imports?
America also sells a lot of stuff (goods and services) to other countries. According to the visual above, how many dollars worth of exports did the U.S. make?
According to the data from the visual above, because the U.S. bought so much more than it sold, the United States had a trade deficit of $1.18 Trillion. In your own words, what do you think trade deficit means?
According to the visual above, what country did the U.S. buy (import) the most goods and services from?
What is one question you have about the data from the visual above?
Tariffs are taxes charged on goods imported from other countries. On February 3, Donald Trump imposed tariffs of 10% on all goods and services from China. So, a product worth $10 would have an additional $1 charge applied to it. According to the visual above, how much did the U.S. spend on Chinese goods and services?
Tariffs in most cases are intended to protect local industries by making imports more expensive and driving consumers to domestic producers. In the United States, several politically sensitive industries benefit from such tariffs: sugar producers have been protected by tariffs since 1789—two years after the signing of the U.S. constitution—and the auto industry has benefited from the so-called chicken tax since 1964, which places 25 percent tariffs on some pickup trucks. Additionally, tariffs are used to shield domestic industries from foreign countries’ unfair trading practices and, in some cases, for national security purposes. They can also be a tool of industrial policy. In your opinion, what is the best reason for the United States to impose tariffs?
Importers pay tariffs to their home government, but most economists find that the bulk of tariff costs are passed on to consumers. This is particularly true for industries with small profit margins, such as retail. Critics say poor Americans are hit the hardest, and recent research has found that U.S. consumers have indeed “borne the brunt” of the tariffs on Chinese goods through higher prices. Experts predict that this recent round of tariffs will raise prices and increase inflation. Additionally, China has now levied its own tariffs on U.S. coal and gas and other goods, restrictions on exports of some minerals and an antimonopoly investigation into Google aimed at hurting U.S. industries. In your opinion, what is the worst impact of tariffs.
At the last minute, President Trump withdrew the 25% tariffs he had threatened on Canada and Mexico, but plans to revisit them in one month. Trump also said tariffs could be imposed on the EU "pretty soon", saying "they take almost nothing [from the US] and we take everything from them". Last year, the US had a trade deficit of $213bn with the EU - which Trump described as "an atrocity". The EU has said it would "respond firmly" to any tariffs. After Chinese tariffs went in to effect a spokesperson at China's Washington embassy said. "Trade and tariff wars have no winners," Do you agree with this statement?
Based on the visual below*, what are some consumer goods likely to be most impacted by President Trump’s tariffs?
Write and Discuss
Take ten minutes to write about the question at the top of the page and then discuss with your classmates.
Act on your Learning
If you are a consumer you should take two minutes and register to vote online.
Get Creative
Go to a store (online or in person) and see what you can find that comes from China. Share your findings in class.