The Benefits Of Free Trade - Addressing Key Myths - Donald Trump May Not Have Read This

27th December 2024

On 20th January 2025 the new president of the United States will begin his term of office. On of his often repeated policies is to bring in huge tariffs to protect and increase American jobs.

Trade is what has built wealth around the world increasing jobs and reducing prices of items we all use daily.

But how many of us really understand how it affects all of our lives on a daily basis.

The US election was won partly on the promise to hit foreign competition from Europe and China, Canada and Mexico as well as many other countries.

So let us take a google look at some of the arguments just as the new president and his advisers must have already done. What he as already announce will have far reaching consequences for everyone of us.

From The Mercatus Center
The Benefits of Free Trade-Addressing Key Myths

International Monetary Fund
Global Trade Liberalization and the Developing Countries

Wikipedia
Wikipedia on Tariffs

General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."

The GATT was first discussed during the United Nations Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization (ITO). It was signed by 23 nations[2] in Geneva on 30 October 1947, and was applied on a provisional basis 1 January 1948.[1] It remained in effect until 1 January 1995, when the World Trade Organization (WTO) was established after agreement by 123 nations in Marrakesh on 15 April 1994,

One of the most important agreements
General Agreement on Tariffs and Trade
The GATT, and its successor the WTO, have succeeded in reducing tariffs. The average tariff levels for the major GATT participants were about 22% in 1947, but were 5% after the Uruguay Round in 1999.[6] Experts attribute part of these tariff changes to GATT and the WTO

World Trade Organisation
Now the agreements of the World Trade Organisation may be turned upside down. Take your time there is lot to take in here.
World Trade Organisation

How will Trump's tariffs affect global trade?

Guardian Article - 16 November 2024
The president-elect's unpredictability on trade has experts guessing about his impact on the UK economy - but some find glimmers of hope in the gloom

Notes
What does a tariff do?
Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers.

A longer explanation
Are tariffs bad for growth? Yes say five decades of data from 150 countries

Simplified
A tax on products that go from one country to another is called a tariff. Governments most commonly collect tariffs on products brought into their countries. Tariffs earn money for a government or protect a country's economy. Tariffs are also called duties or customs.

Youtube
Sandra Gathmann explains.
Donald Trump has promised to introduce a range of new tariffs on imports to the US when he takes office in January. What exactly are tariffs? Why is Trump so keen on them? And why do some people think his plans could backfire and hurt the US economy?
What are tariffs and could Trumps plans backfire