DeepSeek launched a free, open-source large language model in late December, claiming it was developed in just two months at a cost of under $6 million.
The root problem they are trying to fix is real (systemic trade imbalances) but they way they are trying to fix it is terrible and won’t work.
Only a universally applied tariff would work in theory but would require other countries not to retaliate (there will 100% be retaliation).
It doesn’t really solve the root cause, capital inflows into the USA rather than purchasing US goods and services.
Trump wants to maintain being the reserve currency which is a big part of the problem (the strength of currency may not align with domestic conditions, i.e. high when it needs to be low).
The root problem they are trying to fix is real (systemic trade imbalances) but they way they are trying to fix it is terrible and won’t work.
Only a universally applied tariff would work in theory but would require other countries not to retaliate (there will 100% be retaliation).
It doesn’t really solve the root cause, capital inflows into the USA rather than purchasing US goods and services.
Trump wants to maintain being the reserve currency which is a big part of the problem (the strength of currency may not align with domestic conditions, i.e. high when it needs to be low).