Why the White House Worries About Trade Deficits

Do trade deficits matter? The question is important because America’s trade deficit in goods is large and persistent, about $2 billion every day. [PETER NAVARRO| March 5, 2017 |Wall Street Journal] The economic argument that trade deficits matter begins with the observation that growth in real GDP depends on only four factors: consumption, government spending,…

U.S. Agents Raid Caterpillar Over Offshore Tax Practices

Federal agents raided three Caterpillar buildings near its Illinois headquarters on Thursday, company and law enforcement officials said, in an escalation of an inquiry into the heavy equipment manufacturer’s offshore tax practices. [HIROKO TABUCHI| March 2, 2017 |New York Times] Caterpillar has been dogged by accusations that it slashed its domestic tax bill by shifting corporate profits…

What Trump Gets Right on Trade

WASHINGTON — Whatever confusion people might have about President Trump’s agenda, his position on trade and manufacturing is crystal clear. “I believe strongly in free trade, but it also has to be fair trade,” he said in his address to Congress Tuesday night. He called for corporate tax reform and export incentives, and he lashed…