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runako04/03/20251 replyview on HN

I’m not talking about making an exception. I’m suggesting that a trade deficit can arise for reasons that have nothing to do with manipulation.

Also, the administration created the loophole about which you worry by creating a 24% tariff gap between China and the new 10% baseline for most countries.


Replies

bitshiftfaced04/03/2025

Except that because the rule is clear, China will anticipate that doing this in another country will result in eventual increased tariffs. They will be able to see ahead that it's not worth making a big investment for that purpose. The optimal strategy changes to do more business with the US and/or build factories in the US.