International Trade

In chess, success often depends on anticipating several moves ahead while adapting to changing circumstances.  Similarly, American businesses must balance short-term tactics with long-term strategies.  Not only are these firms competing with changing supply and demand, but policymakers can also rearrange the board, requiring businesses to change strategies at the drop of a hat (or tar

Since President Donald Trump announced new tariffs last Wednesday, global markets and economies have been in chaos.  As of this writing, the tariffs now include a blanket 10-percent duty on all trading partners and up to 145 percent for specific countries like China.  This has caused volatile moves in the markets.  U.S.

Tariffs are essentially taxes imposed by a country on goods imported from abroad.  They serve multiple purposes: generating revenue for the government, protecting domestic industries from foreign competition, and sometimes as a tool in trade negotiations.  When a tariff is applied, it increases the cost of imported goods, making them less competitive against domestic products.

America has long been the linchpin of the global economy.  It has often been suggested that when America sneezes, the world catches a cold.  So far, the world’s largest economy has not reached for a tissue or even sniffled, but large trading partners are exhibiting signs of weakness.

Here we are just on the other side of the holiday season.  It’s that cold part of the year without the festive decorations.  A new calendar offers an excuse to consider just what lies ahead, but we’re too far from Valentine’s Day to run out and buy cards and candy.  That doesn’t mean we can write about the heart. 

America’s trade deficit shrank in October 2019 according to the Bureau of Economic Analysis.  The shortfall improved to $47.2 billion from the revised $51.1 billion (originally $52.5 billion) chasm in September.  While on the surface this indicator looked better, the cause of the improvement is not constructive as both sides of the trade ledger declined in the period. 

November 2018 International Trade

America’s trade deficit continued growing in October 2018 according to data from the Bureau of Economic Analysis.  The most recent deficit grew to $55.5 billion from the upwardly revised count of $54.6 (originally $54.0 billion).  In the period, exports declined $300 million while imports increased $600 million, causing the shortfall to reach a 10-year high.