Abstract The purpose of this article is to provide the appropriate policy framework to view the turmoil within which the U.S. economy exists after the start of the second Trump administration utilizing tariffs with no comprehension of their long-term impacts. By highlighting the current economic events and comparing the conditions with the fundamental principles of free trade, the article seeks to provide a convincing case for the complete rejection of isolationist and mercantilist tools. The article demonstrates that free trade between global states leads to increased competition and more efficient production. When the principles of free trade are properly implemented, consumers in the marketplace enjoy a greater variety of better-quality goods at a lower price, which is a win for the consumer. The concept of economic advantage leads to specialization in free trade economies, where a country only produces goods that they are efficient at producing resulting in higher levels of output in quantity and quality. When the principles of free trade are abandoned in favor of mercantilist and nationalist policies, other nations that relied on established free trade agreements seek other trading partners. The resulting impact to the transitioning economy away from free trade is chaotic at best and harmful for all of the economic participants. The first year of the second Trump administration can be best described as chaotic and detrimentally harmful to the United States’ interests and trading partners with no long-term plan for economic revitalization and prosperity.
Ronnie R. Gipson Jr. (Wed,) studied this question.