If you are manufacturing complex things with complex supply chains (like a Boeing 787 or a Caterpillar power shovel), the imports being expensive bit also drives up the price of exports.
But regardless of what happens with trade balance, it will also make borrowing money much more expensive, which is not great for the US since our debt to GDP ratio is over 100%.
It also removes another non-military weapon from our toolkit.
But regardless of what happens with trade balance, it will also make borrowing money much more expensive, which is not great for the US since our debt to GDP ratio is over 100%.
It also removes another non-military weapon from our toolkit.