Le commerce international en eaux troubles

Trade in turbulence

Trade in turbulence

Implications of recent developments in US Trade Policy

The attitude taken by the new US administration to trade policy appears to foreshadow an increase in protectionism, with alleged actions by countries including Germany and China being singled out for particular criticism. But is there any justification for the administration’s claims, and what might trade restrictions designed to promote growth in American manufacturing herald for these countries and the US itself?

In this bulletin we argue that the reasons invoked for protectionism have little or no economic basis, and that – while there may be legitimate concerns about the distributional impacts of trade – such a policy stance would be damaging to both the US’s own self-interest and to world trade more generally.

Developments in US trade policy