Obviously the United States does not want to start a trade war with its allies, but Trump’s reason for implementing the tariffs have merit. He is the first president to question the disproportional amount of aid the United States gives to its allies for nothing in return, and sent out a scathing tweet on Sunday evening:
Fair Trade is now to be called Fool Trade if it is not Reciprocal. According to a Canada release, they make almost 100 Billion Dollars in Trade with U.S. (guess they were bragging and got caught!). Minimum is 17B. Tax Dairy from us at 270%. Then Justin acts hurt when called out!
He added in further tweets: “Why should I, as President of the United States, allow countries to continue to make Massive Trade Surpluses, as they have for decades, while our Farmers, Workers & Taxpayers have such a big and unfair price to pay? Not fair to the PEOPLE of America! $800 Billion Trade Deficit… And add to that the fact that the U.S. pays close to the entire cost of NATO — protecting many of these same countries that rip us off on Trade (they pay only a fraction of the cost — and laugh!). The European Union had a $151 Billion Surplus — should pay much more for Military!”
Finally, Trump mentioned Angela Merkel’s Germany: “Germany pays 1% (slowly) of GDP towards NATO, while we pay 4% of a MUCH larger GDP. Does anybody believe that makes sense? We protect Europe (which is good) at great financial loss, and then get unfairly clobbered on Trade. Change is coming!”
It’s hard to argue that Trump is wrong in these tweets.
Trump’s presidential campaign was based on getting the best deals for Americans and fixing all the unfair trade deals that put the United States in a deficit. This is exactly what he is doing.
The allies who have long benefited from the United States’ deficits are just upset that Americans finally caught on.