Donald Trump’s warning that new taxes (tariffs) on Americans who buy imports from China will be “the first of many” should worry U.S. consumers, companies and financial markets. There is no question the Trump administration imposing tariffs on over 1,000 different imports from China valued at $60 billion is bad economic policy. The only question is how much it will harm Americans and the U.S. economy. I asked economist Daniel Griswold of the Mercatus Center about the wisdom of the United States trying to reduce a trade deficit with another country. “Our $500 billion current account deficit is exactly offset by a $500 billion investment surplus,” notes Griswold.

Source: Forbes March 23, 2018 04:18 UTC