6 days ago
- Business
- Wall Street Journal
Trump's Trade Revolution
While campaigning last year, Donald Trump proposed a 10% universal import tax. Tongue in cheek, I said it was his Nixonian bid to save the global trading order that was already unraveling for reasons larger than Mr. Trump.
Instead we're getting 15% and the world hasn't ended. The expected $350 billion revenue take by the government is perhaps half the cost, the other half flowing to the bottom lines of domestic manufacturers that compete with imports. The hit isn't huge when all levels of government already account for $11 trillion, or 37%, of national spending, on top of which are regulations, mandates and tax preferences that mean government ultimately directly or indirectly controls perhaps 50% of spending.
