Trade policy of the United States

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Outline of the trade policy
Trade policy of the United States refers to the regulations and agreements that control
imports and exports of goods and services to other countries. At the global level, trade policy
is viewed as the central element that resultant in ending global recession, poverty,
unemployment, etc. From the US perspective, their exports are estimated to be $1.5 trillion
and their imports are estimated to be $2.4trillion (Countryeconomy.com, 2019). By
calculation trade deficit, it is estimated that in the year 2017, the US has $811billion as a
trade deficit. However, there is about 9 export account that is accountable for 13% part of the
GDP, on the other hand, import accounts are accountable for 16% part of the GDP
(Countryeconomy.com, 2019). According to the US Bureau of Economic Analysis and the
US Census, the US trade deficit in the year 2019 was estimated at $616.8billion. The primary
goal of US trade policy is to focus on investment and trade with effective regulation for
national security, safety, supporting economic development in the county and expanding the
influence of the US over other countries at the global level (Countryeconomy.com, 2019).
Currently, the GDP of the economy is valued at $21.439trillion. Moreover, economy giants
like the USA, China, etc can influence their terms of trade but a smaller country cannot
influence their terms of trade (Bea.gov, 2019).
The Trump Administration’s trade policy includes significant unilateral tariff actions
that are renegotiated through the North American Free Trade Agreement (NAFTA).
However, their current trade policy involves less engagement and confrontation with China
but they have huge engagement with other trading partners (Bergsten, 2019). The Trump
Administration’s trade policy involves the export and import of all major sectors but in recent
years it is observed that the export of military operations including arms, weapons,
explosives, air missiles, etc are increased in President Trump’s time period. However, in the

INTERNATIONAL ECONOMICS 2
new outlines of the trade policy, it is advisable to him that they should focus less on exporting
military operations and they should start focusing on creating advance technology like
Artificial Intelligence and Machine Learning so that they can export these technologies. In
the new trading policy, it is also suggesting to the President that instead of enhancing import
percentage for agricultural goods, the President should focus on empowering the agriculture
sector so that export can be an increase of agricultural goods and import can be decreased in
effective and efficient (Bergsten, 2019).
SUGGESTED
TRADE POLICY:
SHOULD FOCUS
ON THESE
SECTORS:
FIGURES: ESTIMATED
CONTRIBUTION
IN THE GDP:
A. Improving the
percentage of
agricultural export
It can be estimated
that the USA has the
potential to increase
its export of
agricultural products
by empowering
agricultural activities
in the country.
It can be estimated
that encouraging the
export of
agricultural products
will contribute 2-
2.5% in the nation's
GDP.
B. Less exporting of
military operations
Taking this action
will resultant in less
cash flow in the
country from
military operations
but it is important
that President Trump
Discouraging the
export of military
weapons will restrict
the cash flow but it
will benefit because
it will force
President Trump to