The US runs a trade deficit with China of $375bn. It’s a staggering number, larger than the economies of Ireland or Israel. Little wonder than Donald Trump frets that the US is being taken advantage of.
But how meaningful are bilateral trade numbers anyway? Should governments aim to balance volumes of trade with other countries, or is it all a bit irrelevant? And if you impose tariffs on countries with whom you have deficits, will your overall balance of trade improve?
With the help of Tom, Dick and Ludovic, I’m answering that question.
Robert tweets as ‘@MarketWarbles’