The U.S trade deficit has gone up again and it seems everyone is turning a blind eye toward it — except Republican nominee Donald Trump.
The deficit suffered an 8.7 percent jump in June and has officially reached a 10-month high of $44.5 billion, according to MarketWatch. This jump reflects an increase in the price of oil and of imported consumer goods, namely cellphones and pharmaceuticals.
Economists didn’t see such a large increase coming: A MarketWatch poll predicted the deficit would rise to $43.2 billion from $41 billion in May — not to a soaring $44.5 billion.
Despite the astronomical jumps, many Establishment leaders in the Republican Party as well as President Obama are still urging Congress to pass the Trans-Pacific Partnership, a deal that will almost certainly increase the deficit still further.
Trump, however, has made it known the trade deficit is a serious problem for the American people, as previous administrations have focused far too heavily on international trade deals instead of on jobs at home.
The deficit exists partially because of a “leadership class that worships globalism over Americanism,” Trump said during a trade speech at a metals-processing plant in western Pennsylvania in June.
In order to reduce some of America’s deficit, Trump has vowed to increase tariffs on countries with unfair competition and confront China over currency manipulation issues.
This is the exact opposite of the promise of TPP, which vows to reduce and eliminate tariffs and is predicted to decrease jobs in the U.S greatly. An International Trade Commission analysis showed that the decrease in employment in manufacturing jobs will cause the deficit to worsen — yet many leaders are still advocating for it.
With this increase in the deficit — and a plan that will only serve to increase it further — America needs to take a hard look at future trade deals and at the leaders who are likely to promote them.