Questions for discussion:

On trade deficits:

Suggested reading: Does International Trade Hurt the United States?

• Has the United States had a roughly equal number of years with trade deficits and trade surpluses over the past half century?
• Can ongoing trade deficits be consistent with rising levels of both imports and exports (drawing on the US experience)?
• Are trade deficits necessarily associated with weak growth in national income?
• In what ways can published bilateral trade statistics be misleading?

On tariffs:

Suggested reading: Are Tariffs Raising U.S. Retail Prices?

• Explain how a tariff on a particular import may or may not raise the price facing consumers purchasing that good.
• What is the evidence about who bears the cost of a tariff in this memo?
• How and why might tariffs on imported goods affect prices of domestically produced goods? What does this mean for the relationship between revenues raised from a tariff and the changes in prices of goods?

On industrial policy:

Suggested reading: Industrial Policy is Back. Is That a Good Thing?

• What are some arguments for restricting free trade?

• What are some potential pitfalls arising from industrial policy?

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