Unpacking Trade Balances and Tariffs

This chapter critically examines the historical context of U.S. trade balances and tariffs, particularly in relation to Trump's assertions about their economic implications. It challenges the common belief that trade deficits are inherently negative, arguing that they can coexist with a strong economy and are influenced by nuanced factors. The discussion highlights the complexities of trade dynamics, the motivations behind tariffs, and the necessity of a more sophisticated understanding of international economic relationships.