NAFTA Renegotiation

It is unlikely, though, that his TRADE tactics are what increases the trade deficit. the Us deficit is largely a product of cheap credit. Americans, both personally, though businesses and through government, spend more than they produce; this inevitably (on the scales we’re talking) results in a trade deficit.

Not all spending is bad. If you’re spending on investing in capacity and infrastructure that drives trade deficits, but in the long run it’s a good thing.

People aren’t surprised that Trump is singing this agreements praise, or that it is surprising the biggest change Trump achieved is the name. People are checking an important agreement to see if the changes in any way justify Trump cancelling TPP, ranting about the horrible terrible NAFTA and how he’d negotiate a better deal and blowing up the US’s credibility as a trade partner rather than a international bully.

And the answer so far seems to be he’s done what he usually does, make a lot of noise, put his name on something that pretty much existed already, tout it as a great achievement.