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this post was submitted on 03 Apr 2025
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The real irony of course is that this will have literally the exact opposite effect from what he wants. For some unknown reason Trump is thoroughly obsessed with trade deficits, specifically the eliminating of them. He actually used a formula based on each country's trade deficit when deciding what each tariff would be.
Ultimately though these tariffs are going to massively increase the trade deficits though as the counter tariffs hurt US exports of goods that are either luxuries or else readily available from other countries. Meanwhile while the tariffs will somewhat reduce US demand for imports the fact that there's no real domestic alternatives for the overwhelming majority of goods means they'll still be imported. The net result will be little if any reduction of imports combined with a significant reduction of exports leading to record trade deficits.