Trump set for action on trade gaps with India

The announcement, which would come just days ahead of Trump’s first meeting with his Chinese counterpart Xi Jinping, is widely seen as targeting China. However, Commerce Secretary Wilbur Ross, during his interaction with White House reporters, insisted that the executive order expected to be signed today is not just about China. 

It is about all major countries with which the US has significant trade deficit. Reading out the list of countries with which the US has significant trade deficit, Ross also named India down the line with a trade deficit of $24 billion. 

The US has a massive trade deficit of $347 billion with China, followed by Japan ($68.9), Germany ($64.9), Mexico ($63.2 billion), Ireland ($35.9 billion) and Vietnam ($32 billion). Other countries mentioned in the list were Italy, South Korea, Malaysia, Thailand, France, Switzerland, Taiwan, Indonesia and Canada. 

“This is not meant to say that everybody on this little list is an evil doer. That’s not the case,” Ross said, noting that China is the number one source of trade deficit. As per the executive order, Ross said President would instruct the Department of Commerce and the US Trade Representative to review and report back to him within 90 days on actionable items to reduce the trade deficits. 

The report among other things would examine the reasons for trade deficit and to what extent these are caused by “cheating and other inappropriate behaviour,” Ross said. Echoing similar views, Peter Navarro, Director of White House National Trade Council, said, “Nothing we’re saying tonight is about China. Let’s not make this a China story. This is a story about trade abuses.”