By Howard Richman, Jesse Richman and Raymond Richman:
Trump’s trade policies are working because he understands that the correct response to mercantilism and imbalanced trade from China and other competitors is to insist upon balanced deals, and to force balance through tariffs if they won’t play fair.
Trump’s administration has already negotiated three good trade agreements.
Soon he will target the United States’ imbalanced trade relationship with Europe, resulting from the large number of European-produced automobiles being imported into the United States without enough European purchases of U.S. products to cover the cost. U.S. economic growth will increase dramatically when European automobile producers build new factories in the United States or Europeans buy more U.S. goods and services.
Ultimately, Trump’s policies will also be good for global growth. Imbalanced trade eventually produces worldwide recessions, as happened in 1873, 1930, and 2008, because trade deficit countries cannot keep borrowing more and more to buy imports. In contrast, balanced trade can grow forever.
Read more: American Thinker