Economics

President Trump’s April 2025 announcement of a sweeping reciprocal tariff policy—anchored by a 10% baseline tariff on all imports, with the potential for higher country-specific rates—marks a significant and controversial reorientation of U.S. trade strategy. This policy is intended to address long-standing trade deficits and perceived unfair trading practices by demanding that foreign governments match the United States’ tariffs and open their markets to American goods at levels deemed equitable. The administration frames the move as part of a broader “America First” economic agenda, designed to bolster domestic manufacturing, reassert national economic sovereignty, and reduce reliance on global supply chains that, according to its architects, have hollowed out American industry and exposed vulnerabilities in times of crisis.… Read more

For years, the United States has imported vast quantities of goods from China, but the way it “pays” for those imports is far more complex than simply exchanging money for merchandise. Rather than settling balances with tangible exports or direct payments, the U.S. leverages its unique position as the issuer of the world’s primary reserve currency — the U.S. dollar — and issues debt that China and other countries often purchase.… Read more