Free trade benefits
On the basis that the consumer is king, free trade is obviously best. But if the producer is king, protectionism is rife. Businesses lobby governments, and the consumer is ill-served.
We should applaud Scott Bessent for returning a sense of perspective to US—Chinese trade relations. An economic crisis, not for China as many think but for the US and its dollar has at least been deferred. The reactions in markets were entirely rational, not least for gold values. The dollar crisis is not over, but Bessent has at least bought some time. The dollar’s sigh of relief measured by gold might be described as being almost audible.
This article explains why US tariff policy is both misguided and dangerous. It debunks the belief that protectionist tariffs are necessary. And the US’s trade deficit is not going to disappear, because it is driven by inflationary funding of the budget deficit.
