This is the twelfth and final installment in a holiday-themed series aimed at correcting common misconceptions about trade. For the past 12 days, economists Christine McDaniel and Veronique de Rugy have addressed claims about trade or tariffs while providing additional resources for those interested in learning more about the topic.
Myth: The US Doesn't Need to End the Trade War Anytime Soon
This year, these two elves would love nothing more than to see some resolution to the expensive trade war for American consumers and businesses. That would require lifting the trade barriers imposed on steel and aluminum, and other Chinese goods. This self-inflicted wound has produced much uncertainty, including a rocky stock market and concerns about economic growth. Lifting these naughty tariffs would put end to the vicious cycle of retaliatory tariffs and farm bailouts, the costly downstream effects for American manufacturers, and it would start the process of restoring a cordial relationship with our closest trading partners like Canada and Europe. But because the elves were really good this year, they are hoping to get an additional gift: Needed reform to the World Trade Organization so it can continue to serve us for the next 25 years just as it has since we created it. Until then, we wish you a wonderful holiday season and happy New Year!
1. “US Farms Are Going bankrupt at an Alarming Rate. Trump’s Trade War Is Partially to Blame.” by Alexia Fernandez Campbell, Vox
2. "WTO Ministerials—Now and Then," Trade Talks Podcast
3. “Amid Trade War, Trump Announces Subsidy Checks to Be Sent to Farmers,” by Cole Lauterbach, Watchdog.org
4. “Americans Hurt by Trade Restrictions,” by Veronique de Rugy and Christine McDaniel, The Bridge