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8/2/2025, 4:45:16 PM
>>512039403
He wants to save the USD's status as world trade and world reserve currency and probably doesn't care about domestic inflation. Tariffs are intended to reduce the outflow of USD from the US through purchases of imported goods. This will make the USD relative stronger or depreciate slower than before the tariffs, outside of the US. But it will accelerate domestic inflation.
AND!
If the tariffs are not high enough to make domestically produced alternatives cheaper than imported stuff, it will ensure that the US coon-soomer grows poorer faster and stays poorer.
He wants to save the USD's status as world trade and world reserve currency and probably doesn't care about domestic inflation. Tariffs are intended to reduce the outflow of USD from the US through purchases of imported goods. This will make the USD relative stronger or depreciate slower than before the tariffs, outside of the US. But it will accelerate domestic inflation.
AND!
If the tariffs are not high enough to make domestically produced alternatives cheaper than imported stuff, it will ensure that the US coon-soomer grows poorer faster and stays poorer.
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