International trade is one of the most important aspects of the economy. President Trump enacted new tariffs against China in 2018. These tariffs were designed to shrink the trade deficit between the United States and China. However, a new report shows that the trade deficit reached a record level last month. Many people were shocked by the latest numbers.
After President Trump enacted tariffs against Chinese products, the Chinese government stopped importing agricultural products from the United States. This move caught many people in the United States by surprise. Thousands of farmers went out of business due to declining commodity prices.
Over the past few months, new economic reports indicate that global growth is decreasing. There are multiple reasons for declining global growth. Several European nations are in a recession. China’s growth is the lowest it has been in years. Russia is enduring a major financial crisis. Russia’s economy is tied to the price of oil, and oil prices were lower than usual in 2018.
Brazil was considered one of the hottest economies in the world a decade ago. However, the country has had numerous problems over the last few years. There is a significant banking crisis taking place in the country. Not only has the economy contracted, but thousands of people from Brazil are moving to other nations.
With declining global growth, any slowdown in international trade will cause numerous issues. Many world leaders are hoping that the United States and China agree to end the trade conflict.
The economy in the United States is expanding. Although the national debt continues to rise, many people are happy with the current economic climate in the United States. Some political leaders are calling for an end to the tariffs on imported goods from China. These leaders say that consumers are being hurt by higher retail prices.