Trump's Tweet

Decoupling Dispute

Trump says U.S. has the Option of 'Decoupling' from China, but that contradicts his trade chief.

On Wednesday, U.S. Trade Representative Robert Lighthizer told lawmakers that "I don't think [decoupling is] a policy or reasonable policy option at this point." Lighthizer told House lawmakers that the U.S.-China trade deal is on track. 

Decoupling Silliness

One look at the the above chart shows that Trump proposes reducing a $350 billion deficit with China. 

But Trump's claim actually goes beyond that.

US Cross Trade With China

US Cross Trade With China

Cross trade with China is close to $600 billion per year. 

"Complete decoupling" realistically means no dependence on China, imports or exports.

Even if Trump misspoke, and he really means a trade deficit of zero, not even his trade rep agrees. 

Mish