Free trade flaws fueled Trump's rise in 2016 — and the problems remain, top economist says
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Decades of trade deficits and a strong dollar created too many "losers" in the U.S. economy who turned to Donald Trump's protectionist policies, according to Richard Koo, chief economist at the Nomura Research Institute — and those conditions remain. Trump's "America First" economic policies led his administration to institute a slew of trade tariffs on China, Mexico, the European Union and others, including slapping 25% duties on imported steel and aluminum. As the Republican nominee for the 2024 presidential election, Trump has proposed a baseline 10% tariff on all U.S. imports and a minimum levy of 60% on imported Chinese products. Speaking to CNBC's Steve Sedgwick on the sidelines of the Ambrosetti Forum on Friday, Koo said protectionism was a "horrible thing," but that Trump's approach "does have some economic logic." Koo argued that economists need to move beyond the idea that the trade deficit is simply down to "too much investment" and "too few savings" in the U.S., as this means deficit can only be reduced by remaining in recession until domestic demand weakens so much that U.S. companies can export more goods, which would not be possible in a democracy.

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https://www.cnbc.com/2024/04/05/free-trade-flaws-fueled-trumps-rise-in-2016-and-the-problems-remain-top-economist-says.html