Trump Tariffs Could Have Little or No Effect on U.S. Trade Deficit, Professor Says

The video discusses the impact of tariffs on the US trade deficit, explaining that imposing tariffs on Chinese goods may not reduce the deficit as expected. Instead, it could shift trade to other countries like Japan and Korea. The discussion highlights the potential for a broader trade war and the challenges faced by multilateral trade agreements like the WTO. The video emphasizes the unintended consequences of tariffs, such as increased costs for US firms and consumers, and the redistribution of trade opportunities to other markets.

What is one reason why tariffs on Chinese goods might not reduce the US trade deficit?

• US consumers will buy more goods from other countries.

• US consumers will buy more US goods.

• US consumers will only buy Chinese goods.

• US consumers will stop buying goods altogether.

How might tariffs on steel and car parts affect US car production?

• It will make US car production more expensive.

• It will have no effect on US car production costs.

• It will lead to an increase in US car exports.

• It will make US car production cheaper.

What is a potential outcome of a trade war according to the second section?

• It will only affect the US negatively.

• It will result in a lose-lose situation for the US and China.

• It will only affect China negatively.

• It will lead to a win-win situation for all countries.

What has been the historical role of multilateral trade agreements like the WTO?

• They have always been ineffective.

• They have led to increased global conflict.

• They have contributed to a peaceful and prosperous era.

• They have only benefited the US.

What is a challenge mentioned in the third section regarding multilateral trade agreements?

• Countries are withdrawing quickly from existing agreements.

• Countries are eager to join new agreements.

• Countries are not interested in trade at all.

• Countries are reducing tariffs too quickly.