Trump and Biden Both Edge Toward Protectionism, Risking Repeat of 1930s Trade Wars
• All trade is beneficial, even when there is a deficit, but geopolitics is eroding support for free trade
• Trump plans to impose a 10% tariff on all imported goods if re-elected, which would be the most sweeping such measure since 1930
• Previous trade wars under Trump failed to shrink the trade deficit or stimulate domestic production
• Both Biden and Trump have protectionist tendencies, but Biden distinguishes between allies and hostile regimes
• When America turns isolationist on trade, it removes a source of global demand and risks repeating history from the 1930s