4 ms·
Since the US has a trade deficit with the EU [1], will this negatively impact the US or positively impact the EU in any tangible way? [1] https://www.census.go
by V__ 4y ago
Since the US has a trade deficit with the EU [1], will this negatively impact the US or positively impact the EU in any tangible way?
[1] https://www.census.gov/foreign-trade/balance/c0003.html https://www.census.gov/foreign-trade/balance/c0003.html
- dkjaudyeqooe 4y agoIn this situation the US is importing deflation (Euro) and the EU is importing inflation (USD), assuming you pay in the currency of the country you're buying from. And given the deficit there is more of former happening than the later.
- JPLeRouzic 4y agoI may be wrong but international trade is often labelled in US Dollars [0], so for US entities buying at EU, it would change little, while for EU entities buying in US, it would be costlier as they would have (or their bank) to buy more Dollars to pay for the imported stuff. For US entities selling to EU, nothing changes, but for EU entities selling to US, they would receive less Euros for a given amount in Dollar. As their cost structure is in Euro, they will have a lower net income. [0] https://en.wikipedia.org/wiki/International_use_of_the_U.S._dollar#In_the_global_markets https://en.wikipedia.org/wiki/International_use_of_the_U.S._...