If a country exports a greater value than it imports, it has a trade surplus, positive balance , or a "favourable balance", and conversely, if a country imports a greater value than it exports, it has a trade deficit,
negative balance, "unfavorable balance", or, informally, a "trade gap". A positive balance adds to gross domestic product , while a negative balance subtracts from GDP.
US Treasury Secretary Steven Mnuchin on Sunday said the US and China would not impose tariffs on each other's products, effectively suspending a looming trade war .
The announcement comes a day after
Washington and Beijing announced that China would "significantly" increase purchases of US products as part of a deal aimed at reducing the trade deficit with China.
The deficit stands at roughly $375 billion (€318 billion), but Washington is hoping to reduce it by $200 billion by 2020. Earlier this year, US President Donald Trump sparked concerns of a trade war when he threatened to impose $150 billion worth of tariffs on Chinese products, with Beijing responding with its own tariffs on American products.
Mnuchin said the White House is expecting to see a major increase in agricultural exports, amounting to between 35 and 40 percent.
But French Economy Minister Bruno Le Maire on Sunday warned that Europe could be hurt if the US and China adopt a new trade deal.
GUYS, WHAT DO YOU THINK?
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FACEBOOK COMMENTS
Endy Edeson
Ahile, well said, the trade deficit is too much, China also needs to patronise other countries products equally to avoid tariff hikes on their services and products
Oluwatoyin Obanla
This neophyte called Trump is treating allies with disdain and treating foes with kindness
Gorot Rot
I imagine that this deal is not far from the deal Nigeria had with America recently. The effort made to evade an economic crisis is in the interest of us all.