Trump’s Trade Math Ignores a Major Export: American Services
Trade wars heighten overseas risk for U.S. companies. ‘When you generate bad will, it’s harder to sell stuff.’

—>
https://www.wsj.com/economy/trade/u...2b?st=LSD5hk&reflink=mobilewebshare_permalink
“While the U.S. buys more goods from abroad than it sells, the opposite is true for services, which include everything from streaming subscriptions to financial advice. Trump left these service exports out of his
tariff math, but they are being pulled into his
trade wars.
… Countries can’t easily impose tariffs on services, but they can tax, fine or even ban U.S. companies. The European Union has floated going after
big U.S. tech companies in response to Trump’s sweeping tariff threats. Trump also put U.S. service exports at risk by irking foreign consumers, many of whom might choose to avoid U.S. banks, asset managers and other firms. An economic slowdown that curbs demand as markets grapple with the president’s extreme trade makeover won’t help either.
… For decades, the U.S. and the rest of the world had a deal: Other countries sent cars, phones, clothes and food to the U.S., and in return they got bonds, software and management consultants.
As the U.S. imported more goods from abroad and domestic factories closed,
its goods trade deficitswelled to a record $1.21 trillion by 2024. At the same time, the U.S. services trade surplus grew to $295 billion last year, up from $77 billion in 2000. This is a stark reversal from the mid-20th century, when the U.S. was a manufacturing giant and had a goods export surplus, but had a services trade deficit.
Services gradually came to dominate the U.S. economy as the country grew wealthier. It was no longer
Ford Motor and
General Motors that mattered most, but companies such as
Microsoft,
Alphabet and
JPMorgan Chase. Software and financial products became major U.S. exports. For some of the biggest services firms, foreign markets now matter more than the U.S. …”