Comment by refurb
8 days ago
This explanation doesn’t make sense because dollar denominated debt doesn’t change with devaluation.
What is the more likely explanation is all the countries with trade surpluses will feel the pain long before the US and agree to much better terms than before.
The PM of Canada had already indicated progress is being made on their trade deal.
The US already had pretty favourable trade deals with most of the world. The trade deficit wasn’t because of tariff barriers to US goods overseas.
But the countries hit with high tariffs have specifically uneven trade arrangements.
When countries put a high tariff on US goods while enjoying low or no tariffs when exporting to the US - that’s an unfair arrangement.
No, they do not.
Vietnam for example: US 46% tariff, Vietnam average 15% tariffs.
This will hurt the US far more than it hurts other countries, as other countries will just start to bypass the US and trade with other nations.
Who would trust goods from the US or having them as part of your supply chain after this?
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