
𝐓𝐗𝐌𝐂|Apr 02, 2025 22:42
The reason "tit for tat" is not what it seems is that the United States is in a unique position compared to all other nations. Its currency is the global reserve and lubricant for commerce. The US enjoys a notable seignorage from its ability to run deficits and maintain currency demand, reducing the FX pressures countries normally face. Its economic and financial institutions are the standard for the world, and they benefit from deeper trade integration and reduced barriers. Applying tariffs completely misses these points and assumes the United States is simply another producer fighting for its piece of the pie. Not remotely the case. We literally distribute the pies. Tariffs can be useful for correcting severe imbalances in specific industrial sectors, like in the case of dumping, but this broad strategy will do more harm to American workers than I think they realize. It's concerning to me how supportive they are of something that is more likely to hurt their livelihoods than help.
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