Donald Trump's trade philosophy has roots reaching back to the late 1980s, a period when he first voiced concerns about international trade dynamics. His appearance on CNN's "Larry King Live" marked the beginning of a public discourse that would shape his views on trade and the economy for decades. At the core of Trump's beliefs was the perceived threat from Japan, particularly in the sectors of consumer electronics and automobiles. This era sparked his enduring fixation on tariffs as a tool to protect American industries from foreign competition.
Trump's resentment towards Japan was palpable, as noted by Barbara Res, a former executive vice-president at the Trump Organization. His views on trade, which have remained consistent over the years, challenge the traditional Republican stance of free trade. Instead, Trump advocates for policies that he believes will rectify what he sees as an imbalance in international commerce.
In the late 1980s, Trump began to see tariffs as a necessary measure to safeguard American manufacturing. He viewed foreign imports as detrimental to the U.S. economy and considered the trade deficit a critical indicator of policy success. According to Clyde Prestowitz, Trump's views on trade have remained unchanged for 40 years. Trump's approach suggests that leveraging tariffs, along with deregulation, cheaper energy, and lower corporate taxes, could entice corporations to invest within the United States.
Trump's skepticism towards America's strategic manufacturing policy is evident in his assertions about unfair trade practices. He holds a zero-sum belief that allies are freeloaders if they do not contribute their fair share. Reflecting on this perspective, Trump stated:
"The world is laughing at America's politicians as we protect ships we don't own, carrying oil we don't need, destined for allies who won't help," – Donald Trump
He also criticized the liberal internationalist approach that had predominated since World War II as weak and naive in an increasingly competitive global landscape. Trump's discontent with Japan's economic practices culminated in his belief that America was not receiving adequate returns for its military support to Japan. This sentiment is encapsulated in his words:
"the Japanese, unimpeded by the huge costs of defending themselves (as long as the United States will do it for free), have built a strong and vibrant economy with unprecedented surpluses" – Donald Trump
Trump argues that allies should contribute more to defense costs and that the notion of free trade is flawed when allies like Japan engage in practices he believes undercut American markets. He articulated his perspective on trade by emphasizing the need for fairness:
"free trade is great in theory but in the real world you need to have fair trade and that's a level playing field." – Donald Trump
This belief in fair trade over free trade has driven Trump's economic policies and rhetoric throughout his career. Michael Strain highlighted Trump's unwavering consistency:
"He just says this all the time to anybody who will listen whenever anybody asks, and that's been true for 40 years. And in fairness to him, you know that is a very natural way to view international commerce," – Michael Strain
Trump's business experiences further shaped his views on trade. His interactions with large groups of Japanese businessmen often left him feeling frustrated, influencing his perception of international commerce. This led him to advocate for policies that would protect American interests against what he viewed as unfair practices by foreign competitors.
Despite criticism from various quarters, Trump remains steadfast in his belief that tariffs are an effective tool in trade negotiations. Clyde Prestowitz remarked on Trump's use of tariffs:
"Tariffs are kind of a showy thing that you can say, look what I did, I banged those guys… so you know, you can be a tough guy. Whether or not they are effective in any way is really open to discussion." – Clyde Prestowitz
Trump's approach has certainly upended decades of Republican advocacy for free trade. His focus has shifted towards a transactional model where allies must pay their fair share for defense and economic partnerships. This perspective resonates with his broader worldview that prioritizes American interests in international dealings.