> I’m open to the experiment where targeting a balanced trade with all countries as the goal

Do you mean balanced trade as a whole, so it would be OK to have deficits or surpluses with individual countries as long as the total surpluses match the total deficits? Or do you mean trade with each individual country should be balanced?

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monero-xmr 2 days ago | parent [-]

I would be interested in balancing trade with each individual country, with magnitude of deficit taken into account (i.e. a tiny island country would have vastly less impact than China).

Tariffs artificially increase costs of goods with another country. That should incentivize purchasing the goods from other countries, with the cheapest being our own. Of course we have very high labor costs, and lack a huge supply chain, and on and on. But China only 50 years ago had very little of the same, and America systematically de-industrialized, teaching other countries, moving the kit, and so on, until we lost the ability to make things at scale cheaply ourselves. But the same thing can happen in reverse, there is nothing inherently impossible about having Americans build and run factories, with the benefit of robots and AI and all the latest tools.

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tzs a day ago | parent [-]

I don't see how balancing with each individual country makes sense.

Suppose for example the US needs to buy some natural resource from country X, which the US uses to build something that it sells to country Y at a very large profit. Suppose that the US doesn't export anything that country X needs or wants.

Balancing trade with X would mean cutting back on importing that natural resource, which would cut back on how much the US can build to sell to Y.

There will almost certainly also be loops in the graph of imports and exports. Things like A exports to B exports to C exports to A, with A, B, and C all having net balanced trade, but with each have a trade surplus with one of the others and a trade deficit with one.

If they all tried to force balanced trade with tariffs they just all end up paying more with no actual change in trade except possibly a reduction all around in the volume of trade.

	▲	monero-xmr a day ago \| parent [-]
		This would be an optimization problem and there would need to be far more nuance. But the goal would be balance, without persistent overwhelming differences in trade deficits.