WHY TRUMP IS RIGHT ON TRADE
Many conservative “intellectuals” responded to President Trump’s proposed tariffs on steel and aluminum with hyperbole, bromides and cliches, delivered in the tone of a professor lecturing a dense pupil. Here’s an egregious example by Ben Shapiro.
Humbug.
In The Wealth of Nations (1776), Adam Smith devastated the prevailing orthodoxy of mercantilism, which viewed international trade as zero sum. A nation gained only by screwing its trading partners.
We sing the praises of Adam Smith, but the Chinese are mercantilists. They screw all their trading partners, us especially.
Since the 1990s, our trade deals have been negotiated by people who (a) aren’t very smart, (b) know little about business, (c) don’t care what happens to blue collar workers, and (d) don’t like America very much.
Everyone else wants access to our market. Our trade negotiators hold four aces, but – until Trump – they’ve folded to bust hands.
The most egregious example is NAFTA. We had a $1.35 billion trade surplus with Mexico the year it was ratified. Since then we’ve run deficits totaling $1.069 trillion. What is it Mexico produces we can’t live without? How did we live without it before NAFTA?










