Rethinking international trade rules

If international trade is dangerously imbalanced, how should economies change the rules to bring the world back into balance? Michael Pettis and Erica Hogan, for the Carnegie Endowment for International Peace, make the case for new rules and policies for freer trade. Peter Coy argues in the New York Times that the dollar is too strong for America’s own good, while Trump escalates his tariff threats to protect the dollar’s status, per the Financial Times. Joseph Politano in Apricitas Economics explains how universal tariffs are universally bad. Kimberly Clausing in the Financial Times calls for changes to corporate tax policies over imposing tariffs. Former USTR Michael Froman urges the next President to take a hard look at the tradeoffs in their economic policies, in Foreign Affairs.

Mentioned publications

Trade Intervention for Freer Trade – Michael Pettis and Erica Hogan, Carnegie Endowment for International Peace, October 3, 2024
Pettis and Hogan argue for a new multilateral consensus to correct existing trade imbalances.
The Dollar Is Too Strong for America’s Own Good – Peter Coy, The New York Times Op-ed, October 4, 2024
Coy describes both the need to weaken the dollar and the inherent difficulties in doing so.
HF sponsored accessDonald Trump escalates tariff threat in vow to protect dollar – James Politi, Colby Smith, Aime Williams, and Andy Bounds, Financial Times, September 10, 2024
The FT reports on Trump emphasizing the importance of the dollar as the global reserve currency.
Universal Tariffs are Universally Bad – Joseph Politano, Apricitas Economics, October 3, 2024
Politano delivers a warning about Trump’s plan for universal tariffs.
HF sponsored accessForget tariffs — fixing ‘America last’ tax policy would help more with offshoring – Kimberly Clausing, Financial Times Op-Ed, September 10, 2024
Clausing promotes a policy change that could be more effective and less disruptive than tariffs.
The Next President and the Tradeoffs in U.S. Economic Policy – Michael B. G. Froman, Foreign Affairs, October 3, 2024
Froman urges policymakers to recognize the tradeoffs resulting from the trade policies they propose.