Trump`s tariffs make sense
(MENAFN) Let’s take a moment to consider Trump’s tariffs from a different angle. While it’s easy to dismiss them as reckless or misguided, it’s worth examining the broader economic context before making judgments.
Yes, Trump is known for his impulsive statements, exaggerations, and missteps, but there’s an underlying strategy that deserves a closer look—one that wasn’t crafted by amateurs. While you might not agree with his approach, it’s essential to understand the reasoning behind it.
Global trade imbalances, at their core, stem from mismatches between national savings and investments. In countries like China, Germany, Japan, and major oil exporters, savings tend to exceed domestic investment, leading to trade surpluses as capital flows abroad. Meanwhile, the US has the opposite problem—Americans invest more than they save, which is filled by foreign capital, resulting in a trade deficit.
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