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>The trade deficit with a given country is not determined only by tariffs and non-tariff trade barriers, but also by international capital flows, supply chains,
by charcircuit 2y ago
>The trade deficit with a given country is not determined only by tariffs and non-tariff trade barriers, but also by international capital flows, supply chains, comparative advantage, geography, etc.
All of those other things, minus geography are influenced by the terrifs. Terrifs make economic incentives to invest in America, for America to gain comparative advantages, etc.
- tdb7893 2y agoI mean yeah those are influenced by tariffs a bit (I think it's a safe assumption that the writers of the article know that). It doesn't change the fact that those are mostly driven by things besides US tariffs.