Global Trade And Its Effects On The United States

1046 Words5 Pages
In our quickly expanding global economy, how states execute trade is more important than ever. Global organizations like the International Monetary Fund are established to help the states trade and regulate trade currencies. These global organizations are not always efficient, and can lead to imbalances in trade currency. “For more than a decade, the U.S. and other countries castigated China for its currency policy, saying the yuan’s level gave the country’s exporters an unfair advantage at the expense of its trading partners (Talley 1).” Since free trade always seems to result in trade deficits that are detrimental to the United States, the discussion should center on correcting the trade imbalance in an effort to have these free trade treaties fairer for all sides by imposing tariffs on China. Tariffs are defined as a tax on a product exported from one country and placed on the importing country. Placing tariffs on China will help balance out the United States’ trade deficit with them. China’s increase in exports and decrease in imports, coupled with the devaluing of the yuan puts them in the perfect position for imposing tariffs. China wants to sell much more than they import rather than keeping a stabilized economy (The Great Fall of China 11). If tariffs are put on what little imports they have from the United States, then that will start to bring the trade deficit between the two countries towards zero. Switching from reciprocity to having a substantial amount of
Get Access