The latest numbers on U.S. economic growth are astonishingly good. The land of the free enjoyed 3.2 percent annual real GDP growth for the first quarter of 2019. It would have been even higher—3.5 percent—without the government shutdown.
The numbers vindicate President Trump’s position on trade. The dealmaker-in-chief has been saying for decades that a trade deficit is a drag on growth. And we now learn that almost 1 percent of our GDP growth was a result of a reduction in imports.
Imports are down because Trump’s tariffs are driving down the trade deficit with China. Now that he’s increased tariffs on $200 billion more of Chinese goods, expect the U.S. economy to grow even faster.
Even investors, who have long been wary of tariffs, are now beginning to understand this. Despite the uncertainty surrounding trade with China, the stock market has experienced only modest losses, reflecting the overall strength of the U.S. economy.
The United States has put up with Chinese economic aggression for far too long, under both Democrat and Republican presidents. The Trump Administration has taken a decidedly different tack, pursuing an economic nationalist agenda that insists: