If China agrees and say, you know what?

Reciprocal tariff is zero.

We're not going to put any on you.

You put nothing on us.

If that was to be agreed upon, who loses more and who wins more?

Actually, that is the best scenario.

And that's where actually the standard international trade

theory has a bit of a point unusually you know i'm usually quite critical of mainstream economics

but that's the one point where they're perhaps slightly stronger um everyone would win because you see

tariffs the reason is the following.

Trade is really the source of wealth creation for everyone, trade,

whether it's internal trade or external trade.

But actually when you then have the country divisions

and you look at how countries are doing compared to each other,

you will see that international trade is the

main source of wealth creation between countries. So trade is extremely valuable. Now, most economists

very simplistically follow from that, that you should never have tariffs, not even unilateral

tariffs, not even if the other guys have lots of tariffs against you, you should not respond by putting tariffs on.

It's always better not to have tariffs.

That's the official mainstream economics response.

And they're very clear cut about this.

That's not entirely true.

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