ANNE O. KRUEGER
US President Donald Trump has long been a staunch advocate of import tariffs, proudly calling himself “Tariff Man” and asserting that “tariff” is “the most beautiful word in the dictionary.” During his first term, Trump significantly disrupted the multilateral trading system by raising tariffs on Chinese imports and undermining the World Trade Organization. But the size and scope of the tariffs he has imposed since his return to the White House have shocked the world.
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Defenders of Trump’s trade policies argue that his tariff threats are merely a negotiating tactic and will ultimately benefit the US economy. But his recent actions – including his plan to impose “reciprocal” tariffs, matching those imposed by other countries on US goods – suggest that, unlike in his first term, he is fully committed to his protectionist trade agenda.
Trump’s ultimate goal, however, remains unclear. He seems to have embraced the deeply misguided idea that imports are inherently harmful. To paraphrase French economist Frédéric Bastiat, if exports are good and imports are bad, then the world’s freight ships should be loaded with exports and sent out to sea to dump their cargo overboard.
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