Evaluating the impact of U.S. protectionist trade policies

Aleixandre Brian Duche-Pérez, Anthony Rolando Medina Rivas Plata, Olger Albino Gutiérrez-Aguilar, Cintya Yadira Vera-Revilla

Article ID: 7066
Vol 8, Issue 10, 2024

VIEWS - 143 (Abstract) 66 (PDF)

Abstract


The electoral campaign that led Trump to win the presidential election focused on attacking the elites and using nationalist rhetoric, highlighting issues such as illegal immigration and economic globalization. Once in power, his trade policies, based on perceptions of unfair competition with countries like China, resulted in the imposition of high tariffs on key products. These measures were justified as necessary to protect domestic industries and jobs, although they triggered trade wars at the international level. This article examines the economic consequences of the protectionist policies implemented by the United States under the Trump administration. The protection of less competitive sectors aims to reduce imports, negatively affecting production and income in exporting countries, and limiting U.S. exports to these markets. Although some countries have experienced an increase in real income due to trade diversion, overall, income fluctuations have been negative.


Keywords


protectionist policies; trade agreements; trade barriers; global trade; USA

Full Text:

PDF


References


Behrens, K., Gaigné, C., Ottaviano, G. I. P., et al. (2006). Is remoteness a locational disadvantage? Journal of Economic Geography, 6(3), 347–368. https://doi.org/10.1093/jeg/lbi024

Behrens, K., Gaigné, C., Ottaviano, G. I. P., et al. (2007). Countries, regions and trade: On the welfare impacts of economic integration. European Economic Review, 51(5), 1277–1301. https://doi.org/10.1016/j.euroecorev.2006.08.005

Betz, T., Fortunato, D., & O’Brien, D. Z. (2023). Do Women Make More Protectionist Trade Policy? American Political Science Review, 117(4), 1522–1530. https://doi.org/10.1017/s0003055422001307

Bonikowski, B., & DiMaggio, P. (2016). Varieties of American Popular Nationalism. American Sociological Review, 81(5), 949–980. https://doi.org/10.1177/0003122416663683

Carnes, N., Lupu, N. (2017). It’s Time to Bust the Myth: Most Trump Voters Were Not Working Class. The Washington Post, 5 June 2017.

Curtis, A. (2016). HyperNormalisation. BBC.

de Castro, J. A. (2005). Protectionist pressures in the 1990s and the coherence of North-South trade policies. In: Foreign Trade Reforms and Development Strategy. Routledge. pp. 119-147. https://doi.org/10.4324/9780203979235

Dmitriev, S. (2020). Protectionist Vector of Trump Administration Trade Policy. World Economy and International Relations, 64(2), 15–23. https://doi.org/10.20542/0131-2227-2020-64-2-15-23

FAZ. (2017). Republicans withdraw controversial import tax proposal (German). FAZ.

Fidler, D. P. (2017). President Trump, Trade Policy, and American Grand Strategy: From Common Advantage to Collective Carnage. Asian Journal of WTO and International Health Law & Policy, 12(1), 1-31.

Friedman, U. (2018). What Is Populist? The Atlantic.

Gocer, I., Ongan, S., & Karamelikli, H. (2023). The US State-Level Wood Product-Based Bilateral Trade Balances with Canada Under the Protectionist US Trade Policy, COVID-19, and Economic Policy Uncertainty. The International Trade Journal, 37(5), 544–568. https://doi.org/10.1080/08853908.2023.2226883

Guo, J., & Johnston, C. M. T. (2021). Do protectionist trade policies integrate domestic markets? Evidence from the Canada-U.S. softwood lumber dispute. Forest Policy and Economics, 130, 102525. https://doi.org/10.1016/j.forpol.2021.102525

Hackett, R. (2016). Here Are All the Billionaires Backing Donald Trump. Fortune.

Hanson, G. H. (1997). Increasing Returns, Trade and the Regional Structure of Wages. The Economic Journal, 107(440), 113–133. https://doi.org/10.1111/1468-0297.00145

Hanson, G. (2005). Globalization, Labor Income, and Poverty in Mexico. National Bureau of Economic Research. https://doi.org/10.3386/w11027

Hernandez, F. M. S. (2017). The Causal Role of Ideas in Taiwan’s Protectionist Agricultural Trade Policy. Issues & Studies, 53(03), 1750007. https://doi.org/10.1142/s1013251117500072

Holzer, H. J. (2018). One Year in: Has Trump been Good for US Workers? Brookings.

Hüther, M. (2017). The great experiment: economic policy for renationalization and reindustrialization (German). Wirtschaftsdienst, 97, 159-162.

IEA. (2016). 2015: Snapshot of Global Photovoltaic Markets. Paris: International Energy Association.

Jung, H. U., & Mun, T. H. (2019). The Effect of U.S. Protectionist Trade Policy on Foreign Ownership: A Study of Korea’s Data Set. Journal of Korea Trade, 23(7), 83–95. https://doi.org/10.35611/jkt.2019.23.7.83

Junguito, A. T. (2006). Assessing the protectionist intensity of tariffs in nineteenth-century European trade policy. In: Classical Trade Protectionism 1815-1914. Routledge. pp. 99-120. https://doi.org/10.4324/9780203698860

Kamarck, E., Hudak, J., Stenglein, C. (2017). Immigration by the Numbers. Brookings.

Krugman, P., Livas Elizondo, R. (1996). Trade policy and third world metropolis. Journal of Development Economics, 49, 137-150. https://doi.org/10.1016/0304-3878(95)00055-0

Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 99(3), 483–499. https://doi.org/10.1086/261763

Metiu, N. (2021). Anticipation effects of protectionist U.S. trade policies. Journal of International Economics, 133, 103536. https://doi.org/10.1016/j.jinteco.2021.103536

Monfort, P., & Nicolini, R. (2000). Regional Convergence and International Integration. Journal of Urban Economics, 48(2), 286–306. https://doi.org/10.1006/juec.1999.2167

MMller, K., & Schwarz, C. (2018). Making America Hate Again? Twitter and Hate Crime Under Trump. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3149103

Orozco Soto, J. A. (2019). The impact of the new protectionist stance in US trade policy on selected German companies in Mexico. The International Trade Journal, 33(1), 123–133. https://doi.org/10.1080/08853908.2018.1523761

Petersen, T., Schoof, U., Yalcin, E., et al. (2018). Consequences of a protectionist trade policy in the USA. Stahl und Eisen, 138(6), 62-65.

Shan, Z. (2010). U.S. China Trade Is Win-Win Game. Embassy of the People’s Republic of China in the United States of America.

Tirado, D. A., Pons, J., Paluzie, E., et al. (2013). Trade policy and wage gradients: evidence from a protectionist turn. Cliometrica, 7(3), 295–318. https://doi.org/10.1007/s11698-012-0090-y

US Department of Commerce. (2018). The Effect of Aluminum on the National Security: An Investigation Conducted under Section 232 of the Trade Expansion Act of 1962 as Amended. Washington, D.C.: United States Department of Commerce.

US International Trade Commission. (2017). USITC Announces Remedy Recommendations in its Global Safeguard Investigation Involving Imports of Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled into Other Products). United States International Trade Commission.

Williams, A., Hauslohner, A. (2018). Hate Crimes Rose the Day after Trump Was Elected, FBI Data Show. The Washington Post, 23 March 2018.




DOI: https://doi.org/10.24294/jipd.v8i10.7066

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Aleixandre Brian Duche-Pérez, Anthony Rolando Medina Rivas Plata, Olger Albino Gutiérrez-Aguilar, Cintya Yadira Vera-Revilla

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.