Quantum Windbag, for a nation that generally suffers annual trade deficits, Warren Buffetts concept of Import Certificates, ICs) is far superior to tariffs or to USAs seeking pure unrestricted free trade.
I can best explain the IC version Im a proponent of by comparing it to the more familiar tariffs.
Transferable ICs are ONLY issued to exporters of USA goods. Theyre issued for face amounts of the USA goods assessed values IF they agree to pay the assessment fees defray ALL, (BUT ONLY ALL) net federal expenses due to this trade policy.
The assessed values of the goods are the ICs face values expressed in U.S. dollars.
(Values of specifically listed precious or scarce minerals integral to the goods, (e.g. gold, diamonds, crude oil, rare earths) are excluded from all assessments).
Importers of foreign goods are required to surrender ICs of face values that will cover the assessed values of their goods; surrendered ICs are cancelled.
Unlike tariffs, USA purchasers' additional costs for foreign goods are Markets rather than a federal determined.
ICs are an indirect but effective subsidy of USA exported goods and even if they added only a dime to each imported item they will effectively eliminate USAs trade deficit of all assessment adjusted goods.
Note that This IC policy is grants government no policy discretion. Assessing the value of goods is a technical rather than a policy determination.
Refer to the topic
of Warren Buffett's concept to significantly reduce USA's trade deficit
Respectfully, Supposn
We do not suffer trade deficits.
What are you talking about? We haven't run a trade surplus since the 70s.