San Diego Housing Market News and Analysis
Trade and Inflation
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Submitted by FlyerInHi on June 9, 2018 - 11:01am
What do you think would happen if the US erects tariffs high enough to zero out the trade deficit?
Tariffs would need to be very high since our exports would drop precipitously thanks to a strong dollar (assuming that the USD remains the reserve currency).
I bet the environmentalists would support lower consumption levels.
The other idea Trump floated at G7 is to eliminate all tariffs. That would cause ot trade deficits to ballon way beyond what it is now. I don't understand how that would reduce the trade deficit (our losing billions upon billions in Trump parlance).
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