Comment by tremon

17 days ago

Other countries also have different population numbers. To take a random example, why would e.g. Uruguay (population 3.5M) buy as much from the US (population 100x) as the US is able to buy from them?

Besides, if the trade volume is what determines the tariff, why would any country want to have a trade surplus with the US? The best solution for other countries is to artificially limit their exports, or find more reliable trading partners.

4 comments

tremon

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zuminator  17 days ago

On the face of it that sounds reasonable, but then you look at say China with a 35x population over Canada yet Canadians don't just buy as much from China as vice-versa, they buy CAD$65 billion more. So I don't think the argument that larger countries necessarily have a deficit against their smaller trading partners holds water.

I do agree that this madness will only encourage other countries to conduct their trade elsewhere.

rayiner  17 days ago

> Other countries also have different population numbers. To take a random example, why would e.g. Uruguay (population 3.5M) buy as much from the US (population 100x) as the US is able to buy from them

Because the U.S. can buy from Uruguay only as much as 3.5 million people in that country can produce.

  • rtkwe  17 days ago

    First we don't import any where near all of Uruguay's exports, in fact we're only about 8% of their actual exports which should tell you this isn't the reason we buy more from them than they do from us.

    Next that's always going to be imbalanced because they produce goods cheaper and can't afford as much as the equivalent chunk of people in the US.