Donald Trump’s trade policy might be better than what the United States has now. The problem with Donald Trump’s trade policy is that it is based on trying to force China and other countries to comply with U.S. demands rather than improving American economic performance.
Ultimately the future of the United States rests on what we Americans do, not on what the Chinese do or do not do.

Donald Trump
He is right about one important thing. Washington’s trade policies have not served Americans well.
In some ways, current reflect the priorities of Richard Nixon and Henry Kissinger, who thought the trade policies that favored nations such as Japan or Saudi Arabia were a price worth paying to keep them as loyal allies during the Cold War.
In other ways, they reflect the neo-liberal philosophy that emerged during the administrations of Ronald Reagan and Bill Clinton, which was that the route to prosperity was to serve the interests of large corporations.
International agreements such as the North American Free Trade Agreement and the proposed Trans-Pacific Partnership Agreement guaranteed the rights of corporations to move money and goods freely, but restricted the rights of governments to legislate on behalf of workers, consumers and the environment.
Such agreements have contributed to the erosion of American jobs, wages and national economic strength.
Donald Trump’s solution, as stated on his web site, is as follows:
- Declare China a currency manipulator and demand that China allow its currency to rise to its natural rate. Trump said its current rate is between 15 percent and 40 percent too low. A rise in the exchange rate for the Chinese yuan would, all other things being equal, raise the prices of Chinese-made products in the U.S. and other countries.
- Demand that China obey international standards for copyright and patent protection. This would mean greater revenues for U.S.-based and other non-Chinese media, drug and information technology companies.
- Demand that China stop subsidizing its export industries by such means as free or cheap rent, utilities, tax breaks and raw materials, low-interest loans and special tax breaks.
- “Challenge” China to comply with 21st century labor and environmental standards
- Lower or eliminate the U.S. government budget deficit so that we wouldn’t have to depend on the Chinese and other foreigners to buy government bonds.
- Reduce the top corporate tax rate from 35 to 15 percent, and eliminate inheritance taxes and capital gains taxe
- Build up American military forces in the South China Sea.
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