Skip to main content
SpringerLink
Log in
Book cover

The Global Trump pp 101–138Cite as

Palgrave Macmillan

Protectionist US Policy and Expansionary Fiscal Policy: Ongoing Contradictions

  • Chapter
  • First Online:

  • 1129 Accesses

Abstract

This chapter considers the development of US trade policy and fiscal policy under the Trump Administration. Several inconsistencies are identified and the medium-term challenges which can be expected are identified. Since the US is a big economy, Washington’s protectionist tariff policy and inconsistent fiscal policy are shown to have direct negative medium-term effects on the US as well as negative effects on Europe and Asia/China. This US populist policy approach in turn will cause new conflicts and problems.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   89.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   119.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   119.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Audretsch, D. (2007). The Entrepreneurial Society. New York, NY: Oxford University Press.

    Book  Google Scholar 

  • Bernet, L. (2018). Der Fiebertraum von der selbstbestimmten Schweiz. Neue Zürcher Zeitung, NZZ, November 3. Retrieved from https://nzzas.nzz.ch/hintergrund/der-fiebertraum-von-der-selbstbestimmten-schweiz-ld.1433659?reduced=true.

  • Bhagwati, J. (2004). In Defense of Globalization. New York, NY: Oxford University Press.

    Google Scholar 

  • Blinder, A. S. (2019). The Free-Trade Paradox—The Bad Politics of a Good Idea. Foreign Affairs, 98(1). Online resource, Jan/Feb 2019. https://www.foreignaffairs.com/articles/2018-12-11/free-trade-paradox.

  • Blinder, A., & Watson, M. (2016). Presidents and the US Economy: An Econometric Exploration. American Economic Review, 106(4), 1015–1045.

    Article  Google Scholar 

  • Council of Economic Advisers. (2017, January). Economic Report of the President. Retrieved from https://obamawhitehouse.archives.gov/sites/default/files/docs/2017_economic_report_of_president.pdf.

  • Crucini, M. J., & Kahn, J. (1996). Tariffs and Aggregate Economic Activity: Lessons from the Great Depression. Journal of Monetary Economics, 38, 427–467.

    Article  Google Scholar 

  • Evenett, S., & Fritz, J. (2017). Will Awe Trump Rules—The 21st Global Trade Alert Report. Centre for Economic Policy Research: London.

    Google Scholar 

  • Fajgelbaum, P. D., & Khandelwal, A. K. (2016). Measuring the Unequal Gains from Trade. Quarterly Journal of Economics, 131(3), 1113–1180.

    Article  Google Scholar 

  • Frankel, J. (2006). Twin Deficits and Twin Decades. In R. Kopcke, G. Tootell, & R. Triest (Eds.), The Macroeconomics of Fiscal Policy. Cambridge, MA: MIT Press.

    Google Scholar 

  • Furman, J., Russ, K,, & Shambaugh, J. (2017, January 12). US Tariffs are an Arbitrary and Regressive Tax. VoxEU blog.

    Google Scholar 

  • Gandolfi, D., Halliday, T., & Robertson, R. (2017). Trade, FDI, Migration and the Place Premium: Mexico and the United States. Review of World Economics, 153(1), 1–37.

    Article  Google Scholar 

  • Ghemawat, P. (2017). Globalization in the Age of Trump. Harvard Business Review, July/August Issue.

    Google Scholar 

  • IMF. (2018). United States of America: Staff Concluding Statement of the 2018 Article IV Mission, dated June 14, 2018, Country Report 18/207. IMF: Washington, DC.

    Google Scholar 

  • Kim, S. H., & Shikher, S. (2017). Can Protectionism Improve Trade Balance? Working Paper 2017-10-B, U.S. International Trade Commission, Washington, DC.

    Google Scholar 

  • Krishna, A. (2010). One Illness Away: Why People Become Poor and How they Escape Poverty. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Krishna, A. (2018). Poverty Dynamics and Opportunity. Presented at the Expert Group Meeting on “New Research on Inequality and Its Impacts” at UN Headquarters in New York, September 12–13, 2018, New York.

    Google Scholar 

  • Kutlina-Dimitrova, Z. (2017, March). Can We Put a Price on Extending the Scope of the GPA? First Quantitative Assessment, DG Trade, Chief Economist Note, Issue 1, Brussels.

    Google Scholar 

  • Kutlina-Dimitrova, Z. (2018, September). Government Procurement: Data, Trends and Protectionist Tendencies, DG Trade, Chief Economist Note, Issue 3, Brussels.

    Google Scholar 

  • Kutlina-Dimitrova, Z., & Lakatos, C. (2017). The Global Costs of Protectionism. Policy Research Working Paper No. 8277, World Bank Group, Washington, DC.

    Google Scholar 

  • Lawrence, R. (2017, November). Recent US Manufacturing Employment: The Exception that Proves the Rule, Peterson Institute for International Economics. Working Paper 17-12.

    Google Scholar 

  • Madsen, J. B. (2001). Trade Barriers and the Collapse of World Trade During the Great Depression. Southern Economic Journal, 67, 848–868.

    Google Scholar 

  • Obstfeld, M., & Rogoff, K. (2005). Global Current Account Imbalances and Exchange Rate Adjustments. Brookings Papers on Economic Activity, 2005(1), 67–123.

    Article  Google Scholar 

  • OECD. (2018, June). OECD Economic Surveys: United States. Paris: OECD Publishing. Retrieved from https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-united-states-2018_eco_surveys-usa-2018-en.

  • Pew Research Center. (2018, September). Americans, Like Many in Other Advanced Economies, Not Convinced of Trade’s Benefits, Pew Research Center.

    Google Scholar 

  • Rodrik, D. (2018). Populism and the Economics of Globalization. Journal of International Business Policy, 1, 12–33.

    Article  Google Scholar 

  • Vandenbussche, H. (2014). Quality in Exports, DG Economic and Financial Affairs. Economic Papers No. 528. Brussels: European Commission.

    Google Scholar 

  • Welfens, P. J. J. (2018). Import Tariffs, Foreign Direct Investment and Innovation: A New View on Growth and Protectionism. EIIW Discussion Paper No. 252, www.eiiw.eu.

  • Welfens, P. J. J., Yu, N., Hanrahan, D., & Geng, Y. (2017). The ETS in China and Europe: Dynamics, Policy Options and Global Sustainability Perspectives. International Economics and Economic Policy, 14(3), 517–535. https://doi.org/10.1007/s10368-017-0392-4.

    Article  Google Scholar 

  • Woodward, B. (2018). Fear: Trump in the White House. New York: Simon & Schuster.

    Google Scholar 

  • World Bank. (2017). A Fragile Recovery. Global Economic Prospects June 2017. Washington, DC: World Bank.

    Book  Google Scholar 

  • World Trade Organization. (2017). Annual Report 2017. Geneva: World Trade Organization.

    Book  Google Scholar 

  • World Trade Organization. (2018). Annual Report 2018. Geneva: World Trade Organization.

    Book  Google Scholar 

  • Zoller-Rydzek, B., & Felbermayr, G. (2018, November). Who is Paying for the Trade War with China? EconPol Policy Brief 11.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. European Institute for International Economic Relations (EIIW), University of Wuppertal, Wuppertal, North-Rhine Westphalia, Germany

    Paul J. J. Welfens

Authors
  1. Paul J. J. Welfens
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Welfens, P.J.J. (2019). Protectionist US Policy and Expansionary Fiscal Policy: Ongoing Contradictions. In: The Global Trump. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-21784-6_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-21784-6_3

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-21783-9

  • Online ISBN: 978-3-030-21784-6

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics

Search

Navigation