Panch Tattva Wisdom

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US, Traump and Tariffs

Trump’s methods were controversial, but there was a method behind what many dismissed as madness.
By raising average U.S. tariff rates from about 3–4% to nearly 20%, the government sharply increased customs revenue. This not only helped compress the trade deficit but also created fiscal space to buy back U.S. Treasury securities at lower market prices.
At a time when the U.S. economy was strained by high debt, hollowed-out manufacturing, and persistent fiscal deficits, tariff revenue acted as much-needed oxygen. One may criticise the politics or the tone—but the economic intent was clear.
Politics judges personalities; economics must judge outcomes. Ignoring the logic is not analysis.
#Economics #TradePolicy #Tariffs #PublicFinance #USDebt #FiscalStrategy #PoliticalEconomy #MacroEconomics



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