Trump, Tariffs, Trade—and a Taboo?

 Victor Davis Hanson discusses President Trump's trade strategy aimed at reducing the U. S. trade deficit by promoting fairer trade deals. This approach includes negotiating reciprocal tariffs with key trading partners and addressing ongoing economic issues.

1. Trump's Trade Goals: The primary objective is to cut the annual trade deficit, currently at $1. 2 trillion, by enforcing fair trade practices with countries like China, Canada, Mexico, and members of the EU.

2. Impact of Trade Deficits: Sustained trade deficits are seen as damaging to the U. S. economy. If Trump successfully negotiates deals that reduce these deficits, it could stabilize financial markets and increase stock values.

3. Key Trading Partners:

• Canada: Has a significant surplus with the U. S. largely due to oil and gas exports, which could be leveraged for military investment and reducing trade imbalances.

• Mexico: With a growing surplus, Trump could negotiate reductions by addressing issues such as illegal cartels and remittances.

• China: Represents the largest surplus with the U. S. Efforts to rectify this may involve more aggressive tactics, including diminishing technological exchanges and imposing constraints on Chinese companies.

• EU: The trade surplus with America is complicated by political relations and defense considerations, highlighting the interconnectedness of trade and security.

4. Global Economic Context: Other nations depend on the U. S. market for exports and tend to resist substantial tariff changes, although many acknowledge their advantages in trade. Trump's strategy aims to encourage fair trade without outright tariff wars.

5. Advice for Trump’s Strategy:

• Focus on establishing parity in trade while avoiding aggressive rhetoric that could alienate potential allies.

• Highlight the economic stability and job growth in the U. S. to maintain public support.

• Approach trade negotiations with an understanding of the nations’ perspectives to achieve gradual improvements rather than immediate parity.

• Shift focus away from potential revenue increases from tariffs to the issue of fairness in trade relationships.

Trump's trade strategy is centered around achieving fairer trade relationships to reduce the U. S. trade deficit, particularly with major partners like Canada, Mexico, China, and the EU. By employing a balanced approach that emphasizes reciprocity and investment, while being mindful of the global economic landscape, Trump aims to secure a more equitable trade environment that benefits the U. S. economy.

https://amgreatness.com/2025/04/28/trump-tariffs-trade-and-a-taboo/