The American and British governments take strikingly different attitudes to their trade deficits. Whereas the Yanks’ approach is like that of an angry dragon, spewing fire (tariffs) at the alleged culprits, the Brits seem almost serene. The difference is hardly surprising, given the personality differences between the country’s leaders. But is it justified? Digging into the details, I’m not so sure.
By the dragon’s economic logic, Britain should be raging too. Last year the UK’s trade deficit in goods stood at 8 per cent of GDP, its largest since consistent records began almost three decades ago. That was roughly double the US figure that same year (based on data up to November), despite Trump’s tariff onslaught. It was also bigger than the sizeable bulge America experienced in the 2000s, which also sent politicians into a hot fury.
