RSIS: Trump’s Protectionism

The Trump administration adopts a protectionist stance, contending that the United States is not treated fairly in trade agreements. Protectionism is harmful for economies, and critics are many, inside the United States and beyond, for the US tariffs on aluminum, steel, solar panels and more. Yet politicians often rely on protectionist messages that appeal to the working class, increasing voter turnouts during close elections. Linda Lim of the University of Michigan explains that electoral districts impacted by Chinese import competition, a small minority of constituencies nationwide, voted heavily for Trump. Protectionists target the World Trade Organization and the North American Free Trade Agreement even though evidence shows the United States is a beneficiary of such policies. Meanwhile financiers can invest and profit from the disruptive policies. Lim concludes that Trump’s policies target China, widen the deficit and strive to win over voters in competitive Midwest districts with a nationalistic message. – YaleGlobal