Since the 2016 election campaign, President Trump has stayed true towards his "America First" approach to economic and foreign policy, writes Janet Mui, economist at Cazenove Capital.
After ticking the boxes on the tax reform and infrastructure bill, Trump's focus has turned to trade, with China being his primary target. His motivation is more political than economic, as these protectionist measures are unlikely to fix the structural drivers of the US' massive trade deficit, including the long-term decline in the savings rate, low productivity and its excessive consumption. Since the enactment of the steel and aluminium tariff, Trump has broadened the list of Chinese imports that are subject to a 25% tariff, mainly high-end electronic products. Protectionism: W...
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