Either I am misunderstanding you, or you have it backwards.
America exporting less would result in a larger trade deficit, from America’s pov.
If exports are 10, imports are 20…
10 - 20 = -10
Trade deficit is thus 10.
If exports drop to 5…
5 - 20 = - 15
Trade deficit has increased.
You would either increase exports, or decrease imports, to balance a trade deficit… which is, very simplistically, what tariffs try to make happen.
But, a basic macroecon course will tell you that all that does is make everything more expensive for everyone, a lose-lose situation.
Advanced macroecon will tell you there are sometimes good reasons for highly specific, targeted tariffs, coupled with domestic policy to incubate or support a specific industry…
But willy nilly, slapdash, tariff everything?
Just historically verified to blow up every large, developed economy that implements them.
considering that the us is bigger than a lot of countries, the only way to reduce trade deficit is to reduce american exports
Either I am misunderstanding you, or you have it backwards.
America exporting less would result in a larger trade deficit, from America’s pov.
If exports are 10, imports are 20…
10 - 20 = -10
Trade deficit is thus 10.
If exports drop to 5…
5 - 20 = - 15
Trade deficit has increased.
You would either increase exports, or decrease imports, to balance a trade deficit… which is, very simplistically, what tariffs try to make happen.
But, a basic macroecon course will tell you that all that does is make everything more expensive for everyone, a lose-lose situation.
Advanced macroecon will tell you there are sometimes good reasons for highly specific, targeted tariffs, coupled with domestic policy to incubate or support a specific industry…
But willy nilly, slapdash, tariff everything?
Just historically verified to blow up every large, developed economy that implements them.