How can you explain a persistentsustained US trade deficitSo
How can you explain a persistent/sustained US trade deficit?
Solution
I would say that the US trade deficit is due to unfair trade tactics used by the China. China is keeping it currency value low which makes it exports competitive and cheaper as compared to the US which results in higher demand for Chinese exports and disadvantage the US domestic producers. This results in US production getting sold in low quantities which lead to trade deficit.
The other reason of US trade deficit is that US exports are charged with higher tarriffs across the globe which lowers the demand for US goods.
This situation is not expected ti change unless US makes China and other key trade partners to lower tarriffs on US goods and also keep US dollar value low.
the above is answer..
