Trump’s Protectionistic Approach: Threat to Free Trade?
Prresident Donald Trump’s approach to trade has been and now again is characterized by a strong protectionistic stance, signaling a shift away from the free trade principles that have shaped the global economy for over a century. The United States has long benefited from open markets, particularly with its largest trading partner, Canada. Yet, Trump believes that existing trade agreements have harmed rather than helped the U.S., prompting his rhetoric and push for a new economic strategy.? A new business model for the U.S., to Make America Great Again.
Have Past Leaders Been Wrong About Free Trade?
In going forward, we need to ask the question, have past presidents, economists, trade negotiators, and business leaders, who have all shaped policies under the assumption that free trade leads to mutual prosperity, been wrong? ?Agreements like NAFTA (North American Free Trade Agreement), replaced by CUSMA (Canada-United States-Mexico Agreement) or USMCA in the U.S., which were designed and continue to facilitate trade by reducing tariffs and barriers, boosting economic growth across all participating nations, until now. The question now arises: have all these experts been wrong for the past 100 years, and is Trump the only one seeing the flaws international trade?
Does Isolationism Make a Country Great?
Trump’s strategy of imposing tariffs, renegotiating trade deals, and threatening economic barriers suggests a belief that the U.S. can thrive by isolating itself from international depenesident Donald Trump’s approach to trade has been and now again is characterized by a strong protectionistic stance, signaling a shift away from the free trade principles that have shaped the global economy for over a century. The United States has long benefited from open markets, particularly with its largest trading partner, Canada. Yet, Trump believes that existing trade agreements have harmed rather than helped the U.S., prompting his rhetoric and push for a new economic strategy.? A new business model for the U.S., to Make America Great Again.
Have Past Leaders Been Wrong About Free Trade?
In going forward, we need to ask the question, have past presidents, economists, trade negotiators, and business leaders, who have all shaped policies under the assumption that free trade leads to mutual prosperity, been wrong? ?Agreements like NAFTA (North American Free Trade Agreement), replaced by CUSMA (Canada-United States-Mexico Agreement) or USMCA in the U.S., which were designed and continue to facilitate trade by reducing tariffs and barriers, boosting economic growth across all participating nations, until now. The question now arises: have all these experts been wrong for the past 100 years, and is Trump the only one seeing the flaws international trade?
Does Isolationism Make a Country Great?
Trump’s strategy of imposing tariffs, renegotiating trade deals, and threatening economic barriers suggests a belief that the U.S. can thrive by isolating itself from international dependencies. But history tells a different story. Countries that have embraced protectionist policies have often suffered economic setbacks due to reduced market access, higher consumer prices, and retaliatory measures from other nations.
Lessons from Brexit: Is the UK Better Off?
If we look at the UK’s exit from the European Union, we see a real-world example of a country that distanced itself from a major economic bloc. The aftermath of Brexit has been anything but smooth. Trade disruptions, labor shortages, and economic uncertainty have created challenges that some argue outweigh the supposed benefits of sovereignty. If the UK’s experience is any indication, cutting trade ties does not automatically lead to economic prosperity.
Trump’s Trade Chaos: A Tactical Move?
Trump’s negotiation style often involves creating instability and then stepping in to “fix” the crisis, positioning himself as the dealmaker. ( ie. Ukraine and how a new agreement will resurface shortly, the Trump way). His approach to trade agreements, including his dissatisfaction with CUSMA, suggests that he may attempt to dismantle the agreement and push for new terms under his second term, creating a legacy and making America great again. ?The chaos he has generated is serving as a tool to justify renegotiating trade deals in a way that aligns with his protectionist vision. A new Trade Agreement wil emerge shortly. His approach is consistent in current negotiatiions with Ukraine. Creating choas, walking away and soon ... fixing it.
The Future of U.S. Trade Policy
With Trump’s return to power, the global trade landscape has begun to shift, dramatically. His policies will lead to increased tariffs, strained relations with key allies, and potential economic isolation for the U.S. While protectionism may appeal to certain domestic industries, history has shown that long-term economic growth is best achieved through cooperation and open markets.
Conclusion
Will Trump’s model truly “Make America Great Again,” or will it create more economic harm than good? The answer lies in whether the U.S. chooses to build walls around its economy or renegotiate ties with its partners. The world has seen the benefits of free trade—undoing a century of progress in favor of short-term political gains could have lasting consequences. As history has proven, economic prosperity is not built in isolation, but through collaboration and shared growth.
Have a prosperous day!
John Rudnick