Summary: Targeted tariffs are more effective than broad tariffs because they specifically reduce U.S. dependence on certain imports, like batteries, without heavily impacting American manufacturers. Broad tariffs can raise costs for U.S. companies while making foreign products cheaper, which limits their effectiveness in reducing trade deficits. To effectively lower trade deficits, the U.S. should consider targeted tariffs and focus on depreciating the dollar instead of imposing broad tariffs on all imports.
America is the world’s main “country that buys more than it sells”, while China is the world’s main “country that sells more than it buys”. (View Highlight)
targeted tariffs are capable of reducing U.S. dependencies in specific areas like batteries — in fact, they’re better than broad tariffs for this purpose (View Highlight)
When tariffs make the yuan get cheaper for Americans, that makes Chinese goods cheaper for American customers. And when tariffs make the dollar get more expensive for Chinese people, that makes American goods get more expensive for Chinese customers. (View Highlight)