“It is shortsighted of Trump not to take into account other factors besides the trade imbalance.”
Trump is also taking into account their high tariffs on US goods.
40% on apparel
25% on cars
15% VAT on all imports.
“Trump is also taking into account their high tariffs on US goods.”
Third World countries typically have high tariffs because typical Third World incomes are too low to be taxed.
One of the reasons for the Trump 10% minimum tariff is because many low-income American residents can’t be expected to pay 10% 1040 tax on their entire income. The Trump tariff is imposed on the money low-income American residents are actually able to pay to Uncle Sam.
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Europe has value added taxes. This is because if the income taxes were raised, many Europeans wouldn’t be able to pay their bills.
What may be done is to set the Trump minimum to the higher of 10% or the source country maximum VAT level.
Why the maximum? Because lower rates are set on necessities such as food. Europeans grow most of their own food.
The problem we have with China flooding U.S. markets with cheap goods is not an isolated practice. The same situation exists for many African nations but it is U.S. goods (mostly clothing) which is their concern. They want to boost manufacturing in Africa for the same reasons Trump want to see U.S. manufacturing increase.
I can’t opine as an expert but to me true fair trade involves an equitable exchange of goods (usually those not available domestically) not an outright flooding of products which could be and should be made domestically.
I don’t know the original arrangement but I would hope the deal was meant to be temporary and conditional.