China’s share of the US trade deficit shrinks from 47% to 26%
September 20, 2024
China’s share of the US trade deficit shrinks from 47% to 26%
https://i.redd.it/esqimx0t5upd1.jpeg
by ProfessorOfFinance
1 comment
There has been a lot of noise around the US tariffs on Chinese goods. Anyone fluent in economics knows tariffs are a negative overall.
But, the policy objectives here were clear. US tariffs on China were much more about shifting trade away from China. A prime example of politics influencing economic policy.
It would appear the US Gov objective of using tariffs to reduce the trade deficit with China (by shifting it to other countries who are more friendly, like Mexico & Vietnam) appears to be working.
The goal was never to reduce the trade deficit globally, it was to reduce it with China.
1 comment
There has been a lot of noise around the US tariffs on Chinese goods. Anyone fluent in economics knows tariffs are a negative overall.
But, the policy objectives here were clear. US tariffs on China were much more about shifting trade away from China. A prime example of politics influencing economic policy.
It would appear the US Gov objective of using tariffs to reduce the trade deficit with China (by shifting it to other countries who are more friendly, like Mexico & Vietnam) appears to be working.
The goal was never to reduce the trade deficit globally, it was to reduce it with China.