The post Will Trump tariffs reduce trade deficits? The nation by nation tariff deal appeared on BitcoinEthereumNews.com.

Trump has always been concerned about a lack of reciprocity with US trade partners, believing that is why the US has been having trade deficits. Last year, the US trade deficit in goods rose by 14%. The president wants to solve this problem by imposing tariffs. However, since he started imposing tariffs, the deficit has not changed. The question now is, will the impact be seen in time? Trump said that countries have to balance out their trade with the US before he would consider not putting those tariffs in place. The president said, “We have deficits with almost every country – not every country, but almost – and we’re going to change it.”  His reason is that the US has one of the world’s most open economies, yet its trading partners keep their markets closed to its exports. This lack of reciprocity is unfair and adds to its large and steady trade imbalance every year. Experts take on the origins of the US trade deficits President Trump has talked a lot about the US dollar’s role as the world’s reserve currency. He has also recently warned to impose tariffs on BRICS countries that try to take away that role. But the status of the dollar is a major cause of the trade deficit. Scott Lincicome, VP of general economics at the Cato Institute, said, “Because the dollar is in demand abroad, that actually increases the dollar’s value… generally, a stronger dollar increases imports and decreases exports. […] So in that case, the trade deficit itself is a symptom of a good thing for the U.S. economy and something Trump likes.” In the same light, Scott Lincicome said, “Trump imposed a ton of tariffs on steel and aluminum and on Chinese goods – and the U.S.-China bilateral trade balance did…

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Filed under: News - @ February 15, 2025 3:24 pm