White House trade adviser: Deficit undermines US security

MarketsAssociated Press

Reducing America's huge trade deficits would deliver stronger economic growth and improve national security, White House trade adviser Peter Navarro says.

Speaking at an economics conference, Navarro argues that China and other trading partners use the proceeds from export sales to buy U.S. companies and technology, reducing America's self-reliance. He says, for example, that only one U.S. company is capable of repairing the propellers on Navy submarines and raised the prospect of the U.S. losing the next Cold War "not by shots being fired but by cash registers ringing."

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Navarro waves away as "elitist" the argument that cracking down on imported goods would raise prices for American consumers. He says "modest inflation" would be a worthwhile price to pay for saving and creating U.S. jobs.