Nina Ranimaa 🇫🇮🇪🇺🏳️‍🌈🇺🇦

Running bilateral trade surplus/deficits with different countries is the way it should be. Trying to eliminate each one is simply stupid. I have a trade deficit with my grocer, a trade surplus with my employer. I am not sure it would be a great idea for me to work for my grocer. (Even if the loss for the economic profession was minimal, I am not very good at packing groceries.) Same thing with countries. There are reasons why we sell more to one, buy more from another. Different tariff rates across countries imply reshuffling of deficits and surpluses across countries, but no obvious change in the overall trade deficit. To go back to the economist’s mantra (and the power of identities): If you want to reduce the overall trade deficit, increase saving (you might consider decreasing the budget deficit?) or decrease investment.