Is Trump trying to save China? - UnHerd

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Trump's Inconsistent Trade Policies

The article criticizes Donald Trump's approach to trade policy, highlighting its inconsistency and negative consequences. It argues that his flip-flops on tariffs and lack of a clear strategy for reviving domestic manufacturing have inadvertently benefited China and undermined American interests.

Economic Consequences

The authors point out that the US imports a trillion dollars worth of goods it used to produce domestically, leading to the decline of the working and middle classes. They contend that Trump's policies, instead of addressing this, have exacerbated the issue. The lack of consistent policy makes it impossible for businesses to plan and invest in reshoring.

  • Loss of domestic manufacturing capacity
  • Increased reliance on foreign goods
  • Undermining of American working and middle classes

Comparison to Past Policies and Strategies

The article draws parallels to Latin America's experience with neoliberal policies, highlighting how the abandonment of import-substitution strategies led to similar economic woes. It contrasts Trump's approach with the more strategic tariff approach used during his first term under Robert Lighthizer, as well as the Biden administration's attempts at reindustrialization. Lighthizer's use of tariffs was better planned and targeted at specific aspects of manufacturing to help reduce overreliance on Chinese imports.

Criticism of Trump's Actions

The authors criticize Trump for:

  • Liquidating government programs aiding domestic capacity (e.g., the CHIPS Act)
  • Undermining international alliances that could help counter China's economic dominance
  • Arbitrary tariff levies on crucial goods needed for domestic production

This has led to backlash, even from Trump's allies, highlighting the flaws in his inconsistent and erratic approach to trade policy.

Conclusion

The article concludes that Trump's actions are damaging to the US economy and global stability, potentially leading to a recession and further decline of domestic manufacturing. The authors call for populist conservatives to publicly criticize Trump's policies to prevent long-term negative consequences for the US and the world. The inconsistent policies also harm America's standing and credibility in the international community.

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