The 1980s became known as the “Super Dollar era,” as the dollar appreciated significantly against both the Japanese yen and the German deutschemark, then the U.S.’s most significant trading partners. Not surprisingly, the U.S. trade deficit skyrocketed, as imported goods became more price competitive and U.S. exports suffered abroad.
Under the most dire scenario, a trade war would kill nearly 5 million U.S. jobs, with Washington state hit the hardest of any state, losing 5 percent of its private sector jobs, or a total of 127,685, according to the Peterson Institute for International Economics, a pro-trade group.
The newly-crowned Republican presidential nominee’s contradictory foreign policy platform has consisted of reversing the postwar world order, promoting the proliferation of nuclear weapons, and starting a trade war with China in order to somehow balance out America’s trade deficit.
Economists dispute the idea the United States is “losing” money as the trade deficit is simply the difference between what the United States imports and what it exports to a country.