The president pledges to “make America great again,” which is a crucial and noble sentiment. But protectionism only hurts rather than helps do that job.
The fact is, while the U.S. and the major European countries have emphasized the idea and benefits from free trade, all of these governments impose various types of tariff and other barriers to shelter selected sectors of their respective economies.
A trade war may also finally prompt China to do the smart thing and dump its trillion-plus holdings of U.S.
Elimination of the trade deficit will be a hollow victory if it results in a significant reduction in living standards.
President Trump should focus on getting government out of business by deregulating—and privatizing the United States Postal Service.
A tariff is essentially a tax that will be paid by domestic consumers.
The illogical trade policies of President Trump not only threaten to make Americans poorer, but could start a global trade war that could lead to decreasing standards of living for hundreds of millions of people around the globe.
Governments have sold their bonds to fund vote-buying welfare state spending, or expanding bureaucracies with loyal supporters of power-hungry politicians, or on delusional dreams of military power, or colossal public works projects hailing the greatness of the dictatorial or democratically elected leader.
Economic warfare threatens a downward spiral with reduced trade among nations, and declining standards of living from following this wealth-destroying path.