Trade escalations with the United States are a worrying problem and Germany must do something about its big current account surplus according to economist Heiner Flassbeck. Increase wages and more public spending would be a good start.
Chancellor Merkel has said trade accounting methods are outdated and need revision. Done differently, figures show the US had a $14 billion surplus rather than $153 billion deficit with the European Union in 2017.
Since helping shape the General Agreement on Trade and Tariffs (GATT) in 1948, the World Trade Organization's forerunner, the US has been at the forefront of trade liberalization. That era appears to be ending.
The Trump administration is reportedly preparing to impose tariffs targeting Chinese tech and telecommunications imports. Should Washington follow through on the move, it could spark harsh retaliation from Beijing.
Donald Trump is defending his pledge to build a "big, beautiful wall" on the US's border with Mexico. The president says his position on his most popular campaign promise "has never changed or evolved."
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