on March 12, 2025, 7:42 pm, in reply to "Yes. That’s what happens when you are the biggest, richest economy in the world "
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… you tend to have trade deficits because you spend more then everyone and you consume more than everyone else.
It’s not a bad thing though as others have a competitive advantage and that means you get more bang for your buck.
Free trade is a good thing. It also tends to prevent wars (you tend not to fight people you trade with).
Tariffs stifle free trade and everybody loses, just some don’t lose as much as others do.
I get the argument for supply chain security and I get the arms race argument (when it comes to AI and cyber security).
But this isn’t that, and it’s certainly not framed that way. It’s framed as ‘subsidising’ the rest of the world. And that’s because trump doesn’t understand that trade imbalances aren’t necessarily a bad thing. But then he doesn’t understand basic economic principles such as competitive advantage so why would understand how deficits have been one of the main drivers of US exceptionalism. Previous Message
have huge trade deficits with each other? Do they charge tarriffs to each other? These are questions by the way, not arguments. Previous Message
For the citizens of all countries concerned.
I wouldn’t foresee home grown growth in manufacturing for years if at all. Previous Message
understanding any of it, I had a look for some clarity. I have no idea if this is pertinent but I'm sure I'll soon find out:
The United States is the 2nd largest goods exporter in the world, behind only China. U.S. goods exports to the world totaled $2.1 trillion in 2022, up 17.5 percent ($307.3 billion) from 2021. Canada was the largest purchaser of U.S. goods exports in 2022, accounting for 17.3 percent of total U.S. goods exports. The top five purchasers of U.S. goods exports in 2022 were: Canada ($356.5 billion), Mexico ($324.3 billion), China ($150.4 billion), Japan ($80.2 billion), and the United Kingdom ($76.2 billion). U.S. goods exports to the European Union 27 were $350.8 billion.
Goods Imports
The United States is the largest goods importer in the world. U.S. goods imports from the world totaled $3.2 trillion in 2022, up 14.6 percent ($413.7 billion) from 2021. China was the top supplier of goods to the United States, accounting for 16.5 percent of total goods imports. The top five suppliers of U.S. goods imports in 2022 were: China ($536.3 billion), Mexico ($454.8 billion), Canada ($436.6 billion), Japan ($148.1 billion), and Germany ($146.6 billion). U.S. goods imports from the European Union 27 were $553.3 billion.
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