I frequently moan about the incoherent trade and tariff policies of the current administration and the political damage being done. Whatever the goals are, and the most prominent was to reduce the trade deficit, it isn’t working. The trade deficit has essentially not changed from where it was during the Biden years. There is more volatility in the monthly numbers as importers and exporters in the US attempt to front-run and otherwise adjust to the Trump tariffs and the retaliatory ones from other countries. What reduction there is in the trade deficit is most likely due to a reduction in aggregate demand, i.e., a slower economy, in the US. And other data indicates that there is no increase in US manufacturing jobs, another alleged goal and effect of the tariffs. Starting to look like this really has been a particularly dumb policy. (DW Article)
You’re wrong, Kevin. For our long term economic viability, we have to do what Trump’s is doing.
I don’t understand how a policy that results in no change in the trade balance, no increase in manufacturing jobs, etc. is helpful for our long-term economic vitality? Trump changes what he does every couple of weeks, so hard to even know what that is.