Trade

Prior to 1970 the US ran a positive balance of trade but since then things have turned around. It has now reached one trillion-dollar deficit. This is primarily the result of tariffs. US price due to factors like higher import taxes, VAT, shipping costs, and market demand. For example, a US-market Chevy Tahoe that starts at around $59,000 in the US can cost over $100,000 in Europe, once taxes and other fees are included. A Jeep Grand Cherokee starts at $38,490 in the U.S. but $64,830 in France and $61,990 in Germany. In Japan and China it would cost around $61,990. In 2024, approximately 165,000 American vehicles were imported into Europe. This number is significantly smaller than the number of vehicles the US imports from Europe, which was around 750,000 in the same year Trump’s plan is to have reciprocal tariffs meaning that if a country charges the US a tariff the US will charge the same tariff. If this succeeds then most countries will remove tariffs which will lead to free and fair trade. Free trade is best for all but they must be fair