RE: The Tariff news Thread.9 Apr 2025 18:46
Indeed. As an economist by training, I'd further opine it's a bonkers notion to seek/expect trade parity.
Because it's impossible for poorish countries whom sell say diamonds, avocados, t shirts, coffee, spice, exotic fruit, rare base minerals etc etc, for their $3-5 an HR workers to pony up to buy US luxury goods Harley Davidson's, Jack Bean, Levis, Indians, Buicks, Tesla's and other US goods to balance the trade books. Just impossible!
The penny will drop I hope sooner rather than later ...
On the other aspect of trying to bring manuf back in house, Musk has started that attempted unblinkering of how this is frankly impossible given multi part country input of nearly everything we make (most US goods have 30-70% non USA componentry input) , with his old Milton Friedman video on Pencils - but I suspect that might be his curtain call with the administration.
When will it end we cry, but of course it will end....and I suspect quite soon.