Tariffs are self-defeating! Tariffs are not in the best interest of America's economy!

 

Here's AI's take on tariffs:

Lets hope higher intelligence prevails!

:

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"Tariffs on imports are likely to depress the US economy rather than stimulate it. When tariffs are imposed, they act as a tax on foreign goods, raising their prices and making them less competitive in the US market. This can lead to higher prices for consumers, reduced demand for imported goods, and decreased economic activity.¹ ²

In fact, economists consider tariffs to be poor tools for boosting the economy, reducing the trade deficit, or achieving strategic objectives. They can benefit some domestic industries, but the negative effects on consumers, other businesses, and the broader economy often outweigh these benefits. Tariffs can also lead to retaliatory measures from other countries, sparking a trade war that can further harm the economy.

Historically, high tariffs have been associated with economic downturns, such as the Great Depression. The Smoot-Hawley Act of 1930, which significantly raised tariffs, is often cited as a contributing factor to the Depression. In contrast, periods of low tariffs and free trade have often coincided with economic growth and prosperity.

Additionally, tariffs can lead to a range of negative consequences, including:

- *Higher prices for consumers*: Tariffs increase the cost of imported goods, which can lead to higher prices for consumers and reduced demand.

- *Reduced economic activity*: Tariffs can decrease economic activity by reducing trade and investment.

- *Retaliation from other countries*: Tariffs can lead to retaliatory measures from other countries, sparking a trade war that can further harm the economy.

- *Damage to domestic industries*: Tariffs can actually harm domestic industries that rely on imported goods or components, such as manufacturers that use imported steel or aluminum.

Overall, while tariffs may provide some short-term benefits to certain domestic industries, the negative effects on the broader economy and consumers are likely to outweigh these benefits, leading to economic depression rather than stimulation."

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US trade imbalance with China:

"The US trade imbalance with China is a significant issue, with the US having a substantial trade deficit with China. In 2022, the US goods and services trade deficit with China was $367.4 billion, with US exports to China totaling $195.5 billion and imports from China reaching $562.9 billion.¹

Breaking it down further, the US goods trade deficit with China was $382.3 billion in 2022, while the services trade surplus was $14.9 billion. This means that while the US exports more services to China than it imports, the massive deficit in goods trade outweighs the services surplus.

Looking at the more recent data, in 2024, the US trade deficit with China has continued to grow, with the total trade deficit for the year already reaching $245.4 billion, with US exports to China totaling $118.2 billion and imports from China reaching $363.6 billion.²

The US trade deficit with China for 2024 is projected to be around $245.4 billion, based on the total trade deficit from January to December 2024. This is calculated from the total exports to China, which amount to $118.2 billion, and the total imports from China, which reach $363.6 billion.¹

It's worth noting that the US trade imbalance with China has been a longstanding issue, with the deficit growing over the years. In 2018, the trade deficit was $418.2 billion, and it has remained significant ever since."

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The cause of America's trade imbalance is America's rampant insatiable consumerism ,

Capitalism spawns a consumer culture driven by an ocean of advertizing aimed at promoting ever more consumption.

The only effective way to correct America's  trade imbalance is to reduce consumer demand ; i.e.to reduce consumption! But consumption (and immigration/population growth wch similarly increases consumer demand,) fuels/drives economic growth! 

Trumps intent to impose tariffs on imports and to restrict immigration will combine to depress the US economy!

 Hence Trumps policies may correct the trade I'mbalance,  but with the unintended consequence  of plunging  the economy into recession or even depression!!

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US imports from Canada, such as energy resources and manufactured goods, exceeded US exports to Canada by $80. billion in 2022.

Why would Trump expect Canada to import as much from the USA as it exports to the USA.?

Canada has 1/10 the population(consumers) of the US. It makes simple arithmetic logic that the US would import proportionally more consumer goods  from Canada than visa versa!               The import-export trade imbalance is simply proportional to and accountable in terms of  the population imbalance between the two countries!!

There is no disproportionate economic benefit to Canada in the Canada-,U.S. trade relationship!

It's mutually beneficial!

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According to Statistics Canada, in 2020, energy products (primarily oil and natural gas) accounted for approximately 14.1% of Canada's total exports to the United States.

When excluding energy products from the equation, Canada's trade balance with the US shifts. In 2020, Canada's trade deficit with the US (excluding energy products) was around CAD 34.6 billion.

This means that, indeed, Canada imports more goods and services from the US than it exports, when excluding oil and gas from the trade balance!!