Border adjustment taxes generally consist of an X% tax on imports coupled with an X% subsidy on exports, so that would already increase exports.
Making the import tax and export subsidy the same is also more economically efficient, because it doesn’t impose a net tax on cross border supply chains (imagine manufacturing a car in the US, attaching the wheels in Canada, and then selling it in the US)
If we imagine a well-run Import-Export Bank, it should have a higher elasticity than an export subsidy (e.g. the LNG terminal example). Of course if we imagine a poorly run Import-Export Bank...
One can think of export subsidy as the GiveDirectly of effective trade deficit policy: pretty good and the standard against which others should be measured.
Border adjustment taxes generally consist of an X% tax on imports coupled with an X% subsidy on exports, so that would already increase exports.
Making the import tax and export subsidy the same is also more economically efficient, because it doesn’t impose a net tax on cross border supply chains (imagine manufacturing a car in the US, attaching the wheels in Canada, and then selling it in the US)
If we imagine a well-run Import-Export Bank, it should have a higher elasticity than an export subsidy (e.g. the LNG terminal example). Of course if we imagine a poorly run Import-Export Bank...
One can think of export subsidy as the GiveDirectly of effective trade deficit policy: pretty good and the standard against which others should be measured.