Whose Tariffs are Reducing Exports?

Business Insider reports that since Donald Trump started a trade war with China, the US trade deficit has increased.  In August, this has been primarily due to falling exports.  BI goes on to say:

The primary reason for the increase in the deficit [in August] was a collapse in exports, especially soybeans, which fell off by $1 billion, a 28% drop from the month prior. China, the largest buyer of US soybeans, imposed tariffs on the American crop and it appears the restrictions are taking a toll.

Placing the blame on Chinese tariffs for falling soybean exports is not entirely correct.

A tax on imports (ie, a tariff) is the same as a tax on exports.  Simply put, by reducing the number of imports into a country, it reduces the amount of currency foreigners can use to buy exports.  By imposing tariffs on Chinese goods, Trump indirectly imposed a tax on US exports to China, reducing the exports himself!

None of this is to say the Chinese tariffs on soybeans didn’t make an already bad situation worse.  But we cannot lay the blame for the decline in exports at the feet of the Chinese.

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