alvvayson , 1 month ago I didn't think I'd find a mercantilist in 2024, but here we are. No, that's not how it works, otherwise the US would be a poor country based on their massive trade deficit. Trade takes place because it is mutually beneficial. Each parties gets something out of each trade. Reducing trade therefore will always hurts both countries. Exactly which loses more will depend on a lot of factors, but in general smaller economies are more dependent on larger economies.
I didn't think I'd find a mercantilist in 2024, but here we are.
No, that's not how it works, otherwise the US would be a poor country based on their massive trade deficit.
Trade takes place because it is mutually beneficial. Each parties gets something out of each trade.
Reducing trade therefore will always hurts both countries.
Exactly which loses more will depend on a lot of factors, but in general smaller economies are more dependent on larger economies.