Reviving the American Economic Exceptionalism Narrative: A New Chapter in Trade Policy
President Donald Trump’s unexpected decision to impose a 90-day pause on tariffs for all countries except China has sent shockwaves through the global economic community. This unexpected move, which was announced in late March 2018, has instantly revived the American economic exceptionalism narrative, as headlines begin to shift from trade tariffs to U.S. tax cuts.
A Gradualist Approach to Trade Policy
The announcement came as a surprise, as it marked a departure from the protectionist trade policies that had been a hallmark of the Trump administration’s first year in office. According to Treasury Secretary Steven Mnuchin, the pause on tariffs was a sign of the administration’s commitment to a gradualist approach to trade policy. “The president has always said that he’s open to negotiation,” Mnuchin told reporters. “We believe that we can achieve our objectives through negotiations, and that’s what we’re focused on.”
The Role of Treasury Secretary Steven Mnuchin
The role of Treasury Secretary Steven Mnuchin in this new approach cannot be overstated. While trade-policy architect Peter Navarro had been a vocal advocate for protectionist trade policies, Mnuchin has taken a more conciliatory tone. In a statement, Mnuchin emphasized the importance of working with allies to address trade imbalances. “We’re going to work with our allies to address the trade deficits that we have with them,” he said. “We believe that we can achieve our objectives through negotiations, and that’s what we’re focused on.”
Impact on U.S. Taxpayers
For American taxpayers, the pause on tariffs is likely to mean relief from higher prices on imported goods. According to economists at the Peterson Institute for International Economics, the tariffs that had been imposed on washing machines and solar panels had already led to higher prices for consumers. With the pause on tariffs, those price increases are likely to be reversed.
Impact on the Global Economy
The impact on the global economy is less clear. While the pause on tariffs is likely to be welcomed by U.S. trading partners, it also raises questions about the long-term direction of U.S. trade policy. Some analysts have suggested that the pause could be a sign of weakness, and that the administration could still revert to protectionist policies if negotiations with trading partners fail to produce satisfactory results.
Conclusion
In conclusion, President Trump’s decision to impose a 90-day pause on tariffs for all countries except China represents a significant shift in U.S. trade policy. While the move is likely to be welcomed by American consumers, it also raises questions about the long-term direction of U.S. trade policy. With Treasury Secretary Steven Mnuchin taking a more conciliatory tone, the administration is signaling a willingness to negotiate with trading partners to address trade imbalances. Only time will tell whether this new approach will be successful, or whether the administration will revert to protectionist policies.
- President Trump announces 90-day pause on tariffs for all countries except China
- Treasury Secretary Steven Mnuchin takes a more conciliatory tone on trade policy
- Impact on U.S. taxpayers: relief from higher prices on imported goods
- Impact on the global economy: uncertainty about long-term direction of U.S. trade policy
