President Trump said Wednesday morning that the large U.S. trade deficit is part of the reason why the U.S. economy grew so slowly last year.
“The U.S. recorded its slowest economic growth in five years (2016). GDP up only 1.6%. Trade deficits hurt the economy very badly,” Trump tweeted.
Economists have noted the correlation between growth and trade deficits, but many have said faster economic growth can lead to even higher trade deficits, as a roaring U.S. economy tends to demand more inputs from abroad.
The U.S. recorded its slowest economic growth in five years (2016). GDP up only 1.6%. Trade deficits hurt the economy very badly.
— Donald J. Trump (@realDonaldTrump) April 26, 2017
Trump’s tweet comes at a time when he is escalating tensions with Canada over trade.
On Monday, the Commerce Department imposed down a 20 percent duty on imports of Canadian softwood lumber in order to hit back against what the U.S. says are subsidized Canadian exports. A day later, Trump tweeted that he “will not stand for” Canada’s protectionist policies on dairy imports from the U.S.
Trump has routinely criticized the country’s trade relationship with Mexico and China, while promising to renegotiate the North American Free Trade Agreement and other trade deals. He’s also pulled the United States out of the Trans-Pacific Partnership.
Trump has often been critical of the country’s trade agreements with other nations, arguing they are unfair to American workers.
