When it comes to trade policies, the United States of America has always signed those deal which has favored them most. However, recent reports from the labor department show that people who filed applications for jobless claims have increased significantly from last month. Last month the USA witnessed an excellent condition because the employment rate increased at a reasonable pace because Trump administration managed to add right amount of jobs. But, in this month’s first week, the situation had gotten worse because those people who are dependent on unemployment funds have increased.
In May USA managed to create only 75000 jobs, which were way less than analysts expectations. There are many reasons behind this downfall of US economy. Trump administration is trying to create peace with its neighboring country by signing a fair trade deal. Recently the US signed an agreement with Mexico, which would ultimately solve problem of illegal immigration. Initial claims for unemployment have risen by more than 3000, which is going to put more pressure on the US economy.
Many economists have already predicted that if this situation goes on at the same rate, then US would see a significant recession. The import sector is getting weaker because of Trump’s decision of putting taxes on Chinese goods worth more than $300 billion. Consumer market, which hugely depends upon China, is seeing a significant slowdown and prices of products which ordinary American consumers purchased have increased. Even if Chinese officials have met with Trump administration for more than two times, they haven’t come up with a correct solution. Both countries want a trade deal which would be suitable for their economy, but because of disagreement, they are not signing any agreement. Trump, however, managed to convince Mexico to stop Major problem of illegal immigration by scaring them of putting lots of taxes.