
The goal of a restrictive US trade policy is to reduce the US current account deficit. That seems to me to be the sense of the tariff threats in economist terms. The incoming administration seems to want to do everything to make US companies more profitable: low corporate taxation, the lifting of environmental and consumer protection rules, etc. can probably be subsumed under this heading. In addition, US fiscal policy is likely to become much more expansionary, Commerzbank’s Head of FX Research Ulrich Leuchtmann notes.
A more expansionary US fiscal policy is on its way
“The capital account and
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