Uncensored2008
Libertarian Radical
The answer to my question is he doesn’t understand trade, like most people who think tariffs will work.
As I’ve pointed out here numerous times, the trade deficit is a function of the capital deficit in this country, ie we don’t have enough savings to fund our spending. So we have to import capital. To fund this capital, we MUST run a trade deficit. And we’ve never saved less than we are now. It’s basic macroeconomics.
Thinking raising taxes on trade, ie tariffs, solves this problem misunderstands the nature of the problem.
We don't have the sort of tariffs on Mexico that we do with China. The USMCA is not about tariffs but balance in sectors. And I agree that the savings and reserves are dangerously low across the spectrum in America - nothing to argue on that.