Publication

In this Strategic Trends chapter, Jack Thompson considers the consequences of the Trump administration’s new approach to trade policy. He notes that the current system is, in some respects, unfair to the United States and harmful to millions of Americans. He also observes that the United States is powerful enough to extract trade concessions from all of its trading partners, and that there may be some short-term advantages in following such a course of action. However, he argues, the long-term consequences of the administration’s attempt to, in effect, partially de-globalize the international economy will be harmful. It will encourage other countries to pursue zero-sum trade policies, undermine the multilateral framework – especially the World Trade Organization (WTO) – which was painstakingly constructed over the course of decades, and make international trade less about rules and efficiency, and more about power. None of this will make the United States or its allies more prosperous.