Articles on Trade deficit

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China has long been the EU’s leading origin of imports of goods, including primarily electrical equipment, machines and mechanical parts. While China is also a large destination of EU exports of goods, these are much lower than imports (source: Eurostat). Vchal/Shutterstock (no reuse)

How World Trade Organization reform could help address the EU‑China trade imbalance

The US and China have extended their trade truce till January. Meanwhile, EU-China export/import imbalances persist with sticking points, including voluntary export curbs and industrial policy reform.
More bullshit? U.S. President Donald Trump speaks at the Future Investment Initiative Institute summit in Miami Beach, Fla., on Feb. 19, 2025. (AP Photo)

Why Donald Trump is such a relentless bullshitter

Most liars care enough about the truth to try to conceal it. But simply not caring either way is a different vice — it’s called bullshitting, and Donald Trump weaponizes it.
The components of an iPhone add up to a different cost than the phone itself. Poravute Siriphiroon/Shutterstock.com

The guts of an Apple iPhone show exactly what Trump gets wrong about trade

Trump believes the money Americans spend on Chinese imports like the iPhone goes straight into China’s pockets. In reality, China gets very little value from it.
The trade deficit, and how much a country exports or imports, is only part of the story. AP Photo/Reed Saxon

Why trade deficits aren’t so bad

Americans seem to believe trade deficits are a bad thing, partly because of arguments suggesting they mean the US is ‘losing.’ An economist explains why that’s rubbish.

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