Times of India: Zigzags in Trump’s Trade Policy

The Trump administration goes back and forth with threats over trade deficits and demands that China, Canada, Mexico and other countries purchase more US-made goods. Nayan Chanda, founding editor of YaleGlobal Online, ponders whether abrupt announcements from the president are intended to maintain pressure on other nations during negotiations or boost domestic support. “Whatever the motivation, the ensuing trade battle will hurt the US and its trading partners, and underscore the folly of an ‘America First’ policy in a closely interdependent world,” Chanda writes. Trade spurs efficiency and jobs even for the side with deficits while tariffs increase costs of goods for consumers, disrupt supply chains, contribute to layoffs of workers at home and abroad, and erode alliances. Chanda explains the abrupt changes expose "the complexity of globalized economy.” For example, the US had imposed a ban seven years ago on selling componets to China's ZTE related to charges of cyberespionage and violation of US sanctions. Trump drew criticism for lifting the ban, an effort to protect jobs. Cross-border trade creates winners and losers, and so do tariffs. – YaleGlobal