this post was submitted on 27 Jan 2025
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The root problem they are trying to fix is real (systemic trade imbalances) but they way they are trying to fix it is terrible and won't work.
Only a universally applied tariff would work in theory but would require other countries not to retaliate (there will 100% be retaliation).
It doesn't really solve the root cause, capital inflows into the USA rather than purchasing US goods and services.
Trump wants to maintain being the reserve currency which is a big part of the problem (the strength of currency may not align with domestic conditions, i.e. high when it needs to be low).