Trump on Trade

It’s no particular secret among our friends and associates that we like Donald Trump; went to school with him and have supported him for President.

However, his trade policy needs rethinking. It sounds like protectionism, but there are times when it sounds more like equal tariffs/fair trade.

Lower tariffs, the economic texbooks tell us, promote job growth and spcialization into particular industries. Protectionism is acceptable when a country wants to get an essential industry off the ground, such as solar.

However, it’s clear that some countries, notably Mexico and China, have higher entry tariffs than we do, and they should reduce them. I think this is what Donald is saying, but he needs to clarify it at some point. We would think that his stable of economic advisors, notably Steve Moore, would be so advising him.

But, trade isn’t essential to the growth agenda Trump advocates, but it will help. Getting lower taxes, less regulation and fewer agency interventions will do more.

 

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