Changing times require changing policies. Just because America’s trade practices made sense decades ago does not mean these same trade practices make sense in the 21st century.

With a trade deficit over $500 billion running in their favor, we need to create incentives for our trading partners to renegotiate our current relationships.

That’s because nations – like people – rarely give up economic benefits they’ve grown used to having simply because doing so would be fair. They operate in their self-interest

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Trump-s trade critics are wrong -- His tariffs could bring major benefits to America

Changing times require changing policies. Just because America’s trade practices made sense decades ago does not mean these same trade practices make sense in the 21st century.

http://www.foxnews.com/opinion/2018/07/02/trumps-trade-critics-are-wrong-his-tariffs-could-bring-major-benefits-to-america.html?intcmp=ob_article_sidebar_video&intcmp=obnetwork

President Trump has since explained what “magic wand” he will use. But it’s not magic at all. It’s smart negotiating. In simplified terms, here’s how it works:

With a trade deficit over $500 billion running in their favor, we need to create incentives for our trading partners to renegotiate our current relationships.

That’s because nations – like people – rarely give up economic benefits they’ve grown used to having simply because doing so would be fair. They operate in their self-interest.

However, given this current trade imbalance, our trading partners have more to lose from reduced trade than we do.

Using the potential of fairer and more balanced – but still lucrative – trade relationships as the carrot and economically punitive tariffs as the stick isn’t a magic wand.

However, it could be a very effective approach in the hands of a skilled negotiator willing to do what it takes to convince our trading partners that we are serious – but open to negotiation.

When considering trade policy, it is important to recognize the difference between using tariffs to tilt the international playing field in favor of American businesses and using them as a negotiating tool.

Egilsstaðir, 04.07.2018  Jónas Gunnlaugsson