tariffs
Former President Donald Trump's trade war with China did not work out as planned, and one of his former advisors is finally admitting as much. This week, Semafor's Morgan Chalfant wrote about the potential trade policies of a second Trump administration. Toward the end of his first term, Trump reached a $200 billion deal with China. For his possible second term, though, Trump has suggested a 10 percent tariff across the board on all imports, with additional tariffs as high as 60 percent on goods from China, the country's third-largest trading partner. "I don't think we're going to see a deal l...
Reason
During former President Donald Trump's term in office, he promised that higher tariffs on American imports would reduce the country's large trade deficit. At the time, many economists disputed that notion. Tariffs might marginally reduce the import side of the trade ledger, but they also reduce economic output (and therefore exports), so the net effect on the trade deficit was likely to be minuscule, they warned. No matter. In 2017, the White House's official Trade Policy Agenda highlighted how America's manufacturing trade deficit had grown from $317 billion in 2000 to $648 billion in 2016. T...
Reason
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