Eurozone Experiences Widest Trade Surplus In History
May 16, 2017
Dozens of Republican lawmakers are raising concerns or say they are undecided on Paul Ryan’s (R-Wis.) proposed tax on imports; The Trump administration is working on actions it can take without Congress to fight high drug prices; The Trump administration say their economic policies can deliver 3% to 4% growth year after year.
- Dozens of Republican lawmakers are raising concerns or say they are undecided on Paul Ryan’s (R-Wis.) proposed tax on imports. This suggests that the Speaker’s broader tax reform plan may not have the votes to pass the House. Ryan’s proposal is designed to raise revenue by imposing a tax on imports while lifting a tax on products that are made domestically and exported to alleviate the cost of lowering tax rates. The Speaker argues this would foster investment in the United States and help U.S. manufacturers. Tax reform is unlikely to attract Democratic support in the House, so in order for a bill to pass, Republican leaders will need to minimize defections. [The Hill]
- The Trump administration is working on actions it can take without Congress to fight high drug prices. It is unclear what exactly the administration will do or how consequential the measures will actually be. The prospect of changes has the pharmaceutical industry, a powerful lobbying force in Washington, facing some unpredictability. [The Hill]
Economic Indicators & News
- The eurozone’s trade surplus with the rest of the world during March was the widest since the single currency was launched in 1999, as exports jumped. The surge in exports to a record is another indication that the currency area is set to end the fourth year of its recovery on a high. However, it may also reinforce concerns in the U.S. administration about the value of the euro on foreign exchange markets, and a trade deficit with the eurozone that appears to be growing. [WSJ]
- The Trump administration say their economic policies can deliver 3% to 4% growth year after year, the kind of prosperity the U.S. saw during the 1980s and 1990s—in effect expanding what is considered the economy’s long-term potential. However, such a goal can be difficult to reach given that the U.S. workforce is not increasing or gaining productivity fast enough to spur the robust economic expansion the administration is hoping to have. [WSJ]