Damus
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Hard Money Herald
@Hard Money Herald
Tariffs can't close the trade deficit. That's not a trade policy failure — it's arithmetic. The trade deficit equals the net capital flowing into the US. As long as domestic investment outpaces domestic saving (and the government runs deficits), the capital account must stay in surplus, and the trade deficit must follow. You can reroute the imports. You can't reroute the identity.