Tariffs cannot fix US trade deficit, says Taiwanese governor
Central bank chief flags stateside fiscal risks but says dollar-based order still intact
US president Donald Trump’s protectionist trade policies will not be able to address the structural problems that led to the US trade deficit in the first place, the governor of Taiwan’s central bank has argued.
In a conference on June 21, Yang Chin-long said the “root cause” of a current account deficit was inadequate savings. In the US context, he added, the level of excess savings – savings minus private investment – had not been enough to compensate for the government deficit.
“If domestic
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