Originally Posted by Sunset Poet
Originally Posted by Rob B.
In the age of free trade I find negotiating trade deficits a bit crazy. .

BINGO ROB!

This is NOT actually "THE AGE OF FREE TRADE."
If there is a one-sided arrangement in the trading relationships between 2 countries, characterized by one country having all sorts of tariffs on goods that the other doesn't, THERE IS NOT FREE TRADE.

In defense of that, the country without the tariffs calls it out. If nothing happens to even things out, then, that country installs RECIPROCAL TARIFFS as defensive measure, and then the trade war starts.

If you truly believe in FREE TRADE, then talk to your Euro-German allegiances about those tariffs coming off.
Maybe you can save Trump the trouble.

If there are no uneven tariffs and Trump is just making noise, we'll find out.
But I doubt that.

Marty

Marty,
in the age of free trade some countries will always have a trade deficit. Having governments trying to balance trade between countries with different sized economies is crazy because we then have a centrally planned economy. I, as a consumer, would like to have the freedom to buy any product I want, no matter where it is built, just like your wife when she bought a German car. I used to be able to buy German wine at the Publix store around the corner. It was more expensive than the Californian wine, but I had the freedom to decide if I wanted to spend the money on it or not. A few years ago Trump imposed 25% tariffs on EU wine. Now there are no German wines available anymore. Did that help balance the uneven trade? Maybe, but not much.
You and I have no idea where tariffs are currently in place and if they are uneven. Or do have a tariff list? Every day Trump mentions new tariff numbers 10%, 25%, 100%. That looks pretty chaotic to me and doesn't sound fair nor like like a long-term solution. I find it almost impossible to reach a fair tariff agreement. No tariffs at all would be the fairest solution but then the Americans would continue to buy German cars just because they want to and the US trade deficit wouldn't change much. I personally don't think trade wars will solve anything. In fact, they will probably make things even worse. We, the consumers, will have to bear the brunt. We will have to forgo many things. I still think the EU strategy of having the consumers boycotting products from certain countries is the better solution. But as always, we agree to disagree. A trade war would hit the US much harder than other countries because the other countries would still do business with each other. If the US market is not available to other countries they will intensify their connection with China. China is a huge market. I don't think that would be good for the world.