The truth about trade deficits: Why trade imbalances are not always bad

Focusing on trade deficit alone is myopic and tariffs will not bring jobs back to US, say economists

Traders on the floor of the New York Stock Exchange on May 31, 2019. PHOTO: AFP
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"A more accurate view is to look at the balance of payments," he said, referring to the broader measure of US transactions with the world.

"From that perspective, the US is not that worse off at all," he said, while noting that the bilateral balance of payments between the US and China is not known.

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A version of this article appeared in the print edition of The Straits Times on June 04, 2019, with the headline The truth about trade deficits: Why trade imbalances are not always bad. Subscribe