1. Trump Meets With Chinese President Xi Jinping
By: Jordan Greenberg, Steven Dzibinski, Avery Wescott

2. What is a Tariff?
It is a tax on a specific class of imports and export
What does this do to our economy?
If you look at President Trump’s original proposal he wanted to have 45% tariffs on all chinese products.
Even if it is unlikely, what you would see happen is huge costs for consumers and have gains by other foreign competitors.

3. Changes to trade with China?
Trump proposed up to a 45% tariff on all imports from China (Later denying)
Trump signed a pair of executive orders focusing on reducing the trade deficit
The executive orders were focus towards China’s unfair trade practices.
Imports from China accounted for $347 billion out of the $502 billion U.S. trade deficit.

4. February 2017 Trade Deficit
The total deficit fell to $43.6 billion which is 9.6% lower than it was in January which was at $48.2 billion.
On Tuesday April 4th, 2017 Exports rose 0.2% to a total of $192.9 billion and imports fell 1.8% to a total of $236.4 billion.
China ended up having hardships as the Chinese goods dropped by $8.6 billion due to low cell phone imports.

5. Trade Deficit Between China and USA

6. How Some Think This Can Be Fixed
For some, people do not believe that this deficit has to do with capital account rather than the trade account.
Some believe the best approach would be to implement new policies to absorb some of that foreign savings or by taxing capital flows which was last done in the 1960s.

7. Questions
1- How would an increased tax on China imports affect everyday shopping?
2- How can we change the current trade deficits with China?
3- Do you think that the trade deficit is a capital or trade account issue?

8. Citations
Finnegan, C. (n.d.). Top 3 issues on table for Trump, Chinese president's meeting. Retrieved April 04, 2017, from
Writer, Martin Crutsinger Ap Economics. "US Trade Deficit Drops Sharply to $43.6 Billion in February." ABC News. ABC News Network, n.d. Web. 04 Apr
Pettis, Michael. "What's Really Driving the Trade Deficit With China." Bloomberg.com. Bloomberg, 03 Apr Web. 05 Apr