Xinhua News Agency, New York, April 11th. The website of the "Wall Street Journal", a U.S. publication, published an article on April 10th pointing out that the U.S. government used the reduction of trade deficits as an excuse to impose tariffs on imported goods but did not mention its huge surplus in the service trade sector. The current trade conflict may impact U.S. service trade in multiple ways. Here is an abstract of the article:
The United States brandishes the "tariff stick" in an attempt to reduce the trade deficit in goods. This is only a part of the overall trade picture. Although there is a trade deficit in goods, the situation in the service trade sector, which covers everything from online subscriptions to financial services, is just the opposite. When calculating tariffs, the U.S. government did not take service exports into account, and now this area is being dragged into the trade war.
For decades, the United States has formed a special trading pattern with other regions of the world, where other countries transport cars, clothing, and food to the United States, and in return receive U.S. Treasury bonds, software, and management consulting services. Data shows that the U.S. trade deficit in goods reached a record $1.2 trillion in 2024, while the service trade surplus rose to $295 billion, far higher than $77 billion in 2000.
The service industry is gradually becoming the dominant force in the U.S. economy. Companies such as Microsoft, Alphabet, and JPMorgan Chase have replaced Ford and General Motors as economic pillars. Software and financial products have become major export categories for the United States. For some service giants, overseas markets are now more important than the U.S. market.
Although other countries and regions cannot easily impose tariffs on U.S. services, they can tax, fine, or even issue bans on U.S. companies. In response to U.S. tariff threats, the European Union has proposed a plan to crack down on large American technology companies.
The U.S. government's alienation of foreign consumers also poses risks to U.S. service exports, with many foreign customers possibly choosing to boycott American banks, asset management companies, and other institutions. Anti-American sentiments stirred up by U.S. tariff policies have led to a decrease in foreign tourists, whose hotel stays and air tickets are counted as U.S. service exports. Foreign customers may develop aversion to American brands, and the slowdown in economic growth caused by tariff conflicts will also suppress service demand.
Source: Xinhua News Agency
Original text: https://www.toutiao.com/article/7491986293417591308/
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