When people talk about America’s trade deficit, tariffs often come up as the “solution.” Put a tax on imports, make them more expensive, and the deficit will shrink, right? The problem is that tariffs do not actually fix the underlying imbalance....
I used to quietly feel smug watching others underestimate the power of tariffs in the hands of the United States, especially in discussions about the balance of power between China and the U.S., only to realise I had been underestimating them myself.
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