You don’t have to know David Ricardo from Ricky Ricardo to understand the problems with President Trump’s approach to fixing America’s trade woes.
[ Spencer Jakab | March 5, 2018 | WSJ]
But a seemingly unrelated news item on Monday shows what is being ignored in the debate over Mr. Trump’s tariffs: The U.S. trade balance may be much worse than it looks.
The reason is the boom in U.S. energy production has dramatically reduced the need for oil imports. The U.S. trade deficit in goods and services was $566 billion last year, and in December widened to its highest since 2008. The annual deficit with China alone climbed to $375.2 billion.