Press Release - Assistant to the President Peter Navarro: "The Era of American Complacency on Trade is Over"

"President Trump welcomes continuing dialogue and cooperation with Group of 7 members and our other allies and trading partners. But the days of accepting unfair trade practices are over."

The Era of American Complacency on Trade Is Over

By Peter Navarro

The New York Times

June 8, 2018

President Trump arrived at the Group of 7 summit meeting in Canada on Friday amid an expression of "concern and disappointment" from the six other nations' finance ministers over United States trade policies. Conspicuously absent has been any acknowledgment by these ministers of the trade practices that contribute to America's more than $500 billion annual global trade deficit in goods and services.

Consider Germany, with which the United States had a trade deficit in goods of about $64 billion in 2017. While the United States tariff on cars made in Germany and elsewhere in the European Union is 2.5 percent, the European Union tariff is four times as high, at 10 percent.

...

America's trade deficit in goods with Japan is higher than with Germany: $70 billion in 2017. For every one car America exports to Japan, Japan sends us over 100. High non-tariff barriers, including a complex regulatory system, make it difficult to sell American cars in Japan.

...

As for Canada, which has been most strident in its criticism of the United States, it has for decades dumped its lumber into the United States, threatening lumber industry jobs in Alaska, Oregon and other states.

...

Going forward, President Trump will pursue two goals on behalf of the American nation and people.

First, trade must be not only free but also fair and reciprocal. American tariffs are among the lowest in the world. Our generosity and free market good will has only led to a huge trade deficit and the transfer of wealth abroad.

Second, President Trump reserves the right to defend those industries critical to our own national security.

...

Neither of these goals of the Trump presidency should stand in the way of our longstanding and productive strategic alliances and economic relationships with members of the Group of 7. There will continue to be a strong need to cooperate on issues of mutual interest, including defending democracy and freedom against authoritarianism, and protecting our citizens from terrorism. This also means we should find common ground on fair and reciprocal trade in ways that favor market economics, lower trade barriers and are mutually beneficial to workers across the Group of 7 nations.

...

Read the full op-ed here.