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- W3123862630 abstract "On January 22, 2018, the Trump administration imposed Safeguard Tariffs on $8.5 billion of imports of solar panel and $1.8 billion for washing machines. This move marked the beginning of what is now considered a trade war the USA is fighting against China and other traditional American trade partners such as EU and NAFTA members states. The “official” motivation for Trump’s trade war is that the persisting US trade deficit depends on “unfair competition” by trade partners. Tariffs are therefore seen as a political tool for levelling the field of international trade. In this paper we present and discuss two main objections to this view: the first is that current and trade account disequilibria are ultimately due to differences between domestic savings and investments driven by macroeconomic fundamentals which in general do not depend only on the trade policies of foreign countries. The second objection consists in the fact that the role of the US dollar as the “world’s money” in the current asymmetric international monetary system makes the US trade deficit both inevitable and sustainable in the long run. Unless protectionist measures permanently affect the domestic savings-investment balance they alone cannot eliminate a structural trade deficit." @default.
- W3123862630 created "2021-02-01" @default.
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- W3123862630 date "2019-01-01" @default.
- W3123862630 modified "2023-09-27" @default.
- W3123862630 title "The persisting US trade deficit Is protectionism the right answer" @default.
- W3123862630 hasPublicationYear "2019" @default.
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