Trump is now threatening to impose a 50% tariff on Europe. This is not because they have unfair tariffs on us. The tariffs in both directions are about equal, at less than 2%.
This is because Trump thinks a trade deficit is somehow about tariffs. And because we have a trade deficit with Europe, by imposing an absurd tariff on them this will somehow eliminate this “problem.”
A trade deficit just means that I buy more stuff from you than you buy from me. So I have a trade deficit with my neighborhood Safeway store. I buy lots of stuff from them, and they have yet to buy a single thing from me. Does this suggest some sort of cruel treatment of me by Safeway? No. It just means that’s where I shop for food, because it is cheap or convenient.
A trade deficit with Europe just means that we buy things from them because it is cheap or convenient. This is not a “problem.” It is called shopping.
Larry DeWitt
East side
Disclaimer: As submitted to the Arizona Daily Star.
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