Renowned Nobel laureate economist Robert Solow was once asked whether having a trade deficit is bad for an economy. He answered that he would always have a trade deficit with his barber and always run a trade surplus with his students. Such is the nature of economic transactions.Some countries are more efficient at producing certain goods and services, which they export, while benefitting from importing those they produce less efficiently. The argument that the US should impose equal reciprocal tariffs is fundamentally flawed. It contradicts the principle of comparative advantage, the very foundation of international trade since the beginning of modern civilisation.
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