News of the week : White House May Change Calculation Of US Trade Deficit.
Editor Remarks : In their typical surprising announcement Trump’s administration are mulling changes to how it calculates U.S. trade deficits in a way that would likely to increase possibility of trade war in near future. The main idea being discussed is whether to exclude "re-exports" from the calculation of U.S. exports. Re-exports refer to goods that are imported into the United States, then transferred to another country. There is of course the possibility that this latest leak of Trump economic tactics is merely a trial balloon to gauge the market response. If the government adopted the new method, the deficit with Emerging Economies will become nearly twice as high . That will seriously make the President to call for more Protective measures. India is one of the main exporters to America , chances are likely that this policy measure will seriously undermine our trade relations in near future with the U.S.