economy
How Trump’s Tariffs Can Paradoxically Raise Economic Freedom
This essay is a part of The Right Way Forward, Restoring America’s new think tank debate series in which leading conservative institutions argue the defining questions of the post-Trump era. Read about the series here.
TL;DR
- Trump's tariffs are a controversial topic among conservatives, mirroring debates during Reagan's presidency.
- Free-traders argue tariffs harm the economy and consumers, while others see them as necessary to counter globalization's negative effects on American workers.
- Trump employs tariffs strategically to pressure other countries to reduce their trade barriers and to incentivize companies to bring production back to the U.S.
- These tariffs have been credited with prompting at least 15 major trade partners to lower barriers on American goods.
- Significant foreign investment in U.S. factories and jobs has occurred, with Trump touting over $4 trillion in incoming investment.
- Tax cuts and regulatory relief, such as accelerated depreciation and numerous deregulatory actions, have been implemented to encourage reshoring and benefit the broader domestic economy.
- The article posits that Trump's tariffs, when coupled with domestic economic reforms, can paradoxically increase economic freedom.