US blacklists Switzerland for "unfair trade"
www.swissinfo.ch
The United States has placed Switzerland on a list of countries with "unfair trade practices".

The United States has placed Switzerland on a list of countries with “unfair trade practices”.

  • Eatspancakes84@lemmy.worldEnglish
    12·
    4 hours ago

    This focus on the balance of trade is sooo stupid. The US spends more than it produces so it has an aggregate deficit on the trade balance. To stop this, you need to force Americans to spend less (I.e. ignite a recession), or produce more.

    Tariffs against selected countries that have a strong bilateral trade surplus with the US will not affect the US’ aggregate trade balance, since it doesn’t affect consumption by/ or production of the US economy. This is common knowledge from econ 101, and shouldn’t need to be explained to a president that supposedly has a degree in business.

    • mmddmm@lemm.eeEnglish
      1·
      20 minutes ago

      To stop this, you need to force Americans to spend less (I.e. ignite a recession), or produce more.

      Well, you need them to import less (i.e. stop making foreign government loans) or export less (i.e. start buying foreign government loans from other countries).

      Neither of them is exactly a recession, but it’s a large change that would trigger one if done badly. (AKA, the current administration will absolutely trigger one if they try - they aren’t trying by the way.)