If you really wanted to fix the US economy you'd uncouple the $ from the oil markets and let it float downward - the cost of imports would go up and exporters would earn more (and be more competitive in their domestic markets). The BTW is why China is pushing the yuan down now, because unlike Trump, they understand how this stuff works.
Trade imbalances are simply currency imbalances that haven't been allowed to find their own levels - what you can't do is have an artificially high currency (by requiring all global oil sales be made in it, creating an artificial scarcity) and not have a trade deficit - you can't have your cake and eat it too
The dollar is kept artificially strong through oil, so america can maintain an effectively infinite debt and an arbitrarily large deficit without the dollar ever weakening despite how much is printed…
I’m sure this sounds bad to someone, but if I was America, I wouldn’t try to put the gift horse into the wood chipper.
Oil supported by the world's biggest military and huge subsidies.
It's why moving to renewables would be catastrophic for the US. And for all of the big Fossils, including Russia and the Saudis. And the smaller second-order beneficiaries like the UK who make money from "services" - moving the big money around and avoiding taxes on it.
We're in a messy transition to a post-fossil global economy. It's going to take decades, and it's not obvious how much will be left standing when it's over.
But one way or another, it's locked in and unavoidable.
If your currency is high value (which USD is due to demand in part due to oil and part due to others having reserves of it), foreign goods are cheap to you. This makes importing attractive, but it makes it very expensive for other countries to buy your exports.
If your currency has a lower value, it’s cheap for others to buy your exports, but expensive for you to import goods.
Trade imbalances are simply currency imbalances that haven't been allowed to find their own levels - what you can't do is have an artificially high currency (by requiring all global oil sales be made in it, creating an artificial scarcity) and not have a trade deficit - you can't have your cake and eat it too