Comment by n2d4
8 days ago
The label "tariffs charged to the US" is just straight-up wrong, either due to incompetence or malice (likely to justify the high tariffs).
But basing the tariffs on import/export ratio makes sense if your goal is to be a net exporter with every country, as it discourages imports until that's the case. It's still somewhat arbitrary though; my guess is that the White House is pursuing that goal mostly for political, not economical reasons.
It's because he thinks trade deficits are somehow a subsidy. He has literally used the terms interchangeably. He's just dumb.
I would love to hear the plan on how the US can be a net exporter of coffee with, say, Indonesia (32% tariff). Perhaps we can take the funds from the tariffs and build mass greenhouses?
Why do you think the plan is to export every single good? The calculation is clearly on the total import/export balance.
We do not have to be net exporters of coffee - Indonesia can buy US cars, corn and wheat for example to balance trade.
Ah yes, all we have to do is drive US wages so low that Indonesian wages can employ Americans just as readily as our wages employ Indonesians.