Rep. Nancy Pelosi's Criticism of U.S. Free Trade with China

In 1996, Rep. Nancy Pelosi criticized the bipartisan plan to give Most Favored Nation trade status to China due to the growing trade deficit and job loss for Americans. She warned about the economic devastation caused by U.S. free trade with China, which has resulted in the loss of millions of American jobs. Pelosi's concerns about China's human rights violations and job loss have been validated by reports showing the negative impact of free trade policies on American workers and communities.

President Trump's New Tariffs and the Tariff Formula

President Trump announced new tariffs on various countries, claiming they are reciprocal, but in reality, they are not. The tariffs are based on a formula to raise prices and close the trade deficit. The administration revealed their calculations, which include assumptions about how tariffs will affect prices and consumer behavior.

U.S. Trade Deficit and Foreign Economic Policies

The U.S. trade deficit is not solely caused by Americans overspending, but by foreign economic policies that flood the U.S. with excess savings. Tariffs are seen as a defensive measure to counter these imbalances and protect American economic sovereignty.

U.S. Trade Deficit

The U.S. trade deficit decreased by 11.9% to $73.8 billion in October, surpassing economists' expectations. Both imports and exports saw declines, indicating a potential cooling in demand for foreign-made products.

U.S.-China Trade Deficit

Former President Donald Trump falsely claimed that the U.S.-China trade deficit was over a trillion dollars, when in reality it was about $252 billion in 2023, the lowest in 14 years. Many economists do not believe trade deficits are necessarily bad.

President Joe Biden's State of the Union Address

Breitbart Economics Editor John Carney criticized President Joe Biden's State of the Union claim of eliminating the trade deficit as false, stating that the deficit has actually worsened under Biden's presidency.

Biden's False Claim on Trade Deficit

Biden falsely claimed during his State of the Union Address that the U.S. is exporting products instead of importing foreign products, implying the trade deficit had been reduced. In reality, the U.S. still ran a goods and services trade deficit of nearly $779.8 billion last year, higher than under any prior president.