alt Hacker NewsSo what's going to happen is:
- each country will impose equivalent taxes on the import of US goods - this is not only expected, but the norm under international trade law. - with the rest of the world, still having free trade agreements between them, will start trading around the US, the US won't be able to compete
The value of the US$ will likely drop by the value of the tariffs. If everyone starts trading around the US we'll probably lose the US$ as a standard currency to trade in, maybe switching to yuan or euros, the US$ is buoyed by it being the currency everyone uses, that's going to drive it even lower.
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Not just goods, US tech sector will be taxed and tariffed into non-existence.
That's precisely the point right? Devalue the dollar when so you can pay off your debt with a higher value asset.
If the US$ drop 30%, the deficit magically dropped 30% when calculated in something else....
>each country will impose equivalent taxes on the import of US goods
Many of these countries already have tariffs on U.S. goods. The EU has a 25% tariff on US agricultural, chemical, and some manufactured products.