Government fiscal deficit, inflation rate, income tax burden. Choose any two to reduce, but only two.

That's why the new analysis says whatever new tariff income earned, is offset by the additional fiscal deficit in government already.

I think Taiwan is a cash cow for USA, not a cost center.

It is always a lost cause to bring back "all" manufacturing to USA anyway. Even if you exclude China, the rest of the world can produce most of the goods cheaper than if it is made in USA. Not to mention USA itself does not even have the workforce to manufacture everything. The right strategy has always been to target specific industry in which USA has an advantages. Even Trump has already mentioned lately he does not intend to bring back low end manufacturing jobs like textiles, furniture etc back to USA. USA will continue to import a lot of goods even in the future. The only time you won't be able to import lots of goods is when your currency value is low compared to the other exporting countries, which will not happen to USA anytime soon.

I always thought USA has another mean to address the deficit issue. They just have to make laws to disallow foreign entities and persons to buy their local companies and assets, or requiring them to pay a high premium in form of taxes if such purchase is allowed to proceed. Then all those USD held by foreign countries are only good to buy USA goods both present and in the future, and they won't have the national security concerns when the country assets are being "sold" to foreigners.


This post has been edited by vhs: Aug 14 2025, 11:34 PM