Economics

So the goal of tariffs is to cause an increase in the value of non-US currencies, which will balance out the trade deficit.

I suspect it will split the world into trading blocs.

The classic way to devalue a currency is to print money (increase money supply). But what Trump seems to be doing is reducing government expenditure, which will have a deflationary effect. Tariffs might cause more demand for US products in the US??? which might offset deflation?

I don't really understand how central bankers in non-US countries use $USD. I suppose they buy T-bills and hold them. ??? Apparently this is the underlying problem keeping the $USD high???