President Donald Trump got some bad news earlier this week — the U.S. trade deficit of $48.5 billion reached a five-year high in January. While economists do not believe that a trading deficit is a reason for concern, Trump has made it his administration’s mission to reduce it.
This means the U.S. will have to either increase its exports, reduce its imports or both. With implementation of tariffs, Trump could make imported products more expensive. He could impose sanctions and ban certain products from coming in. Besides trade policies, there are other factors — such as other countries’ trading policies, global cheese consumption and the strength or weakness of foreign currency — affecting global trade that Trump has little influence over.
There are dozens of countries that U.S. has trade relationships with; three that have contributed to the U.S. trade deficit are China, Russia and Mexico.
Here is a closer look at their relationships: Click Here to Continue Reading