U.S. Trade and Tax Policies Conspire to Stymie U.S. Manufacturing

Hugh J. Campbell Son of a steelworker, Philadelphia, Pa.

In Global economic forces conspire to stymie U.S. manufacturing, Brookings’ David Dollar contends that job loss in manufacturing derives primarily from technological change, not from trade. If this were truly the sole cause, why have virtually all our trading partner been able to better deal with these technological changes and avoid the increasing trade deficit that the U.S. political elite have inflicted on America’s working class?

The answer is our trading partners have domestic friendly trade and tax policies that enable them to better deal with the technological changes that have occurred.

Donald Trump achieved his Electoral College victory, in no small part, by vilifying the United States’ increasing trade deficit, just as progressives have for decade. The appointment of Dr. Peter Navarro to head the White House National Trade Council, which is welcomed by United Steelworkers (USW) International President Leo W. Gerard and other American labor leaders, is intended to reshape U.S. Trade Policy to promote domestic production and job creation, rather than as a foreign policy tool as it has been in the past.

Progressives should be on the lookout for and support Navarro’s initiatives to mitigate currency manipulation, border taxes on U.S. exports by our trading partners and tax benefits to corporations that incentivize the offshoring of U.S. jobs.

Expect both the mainstream media and think tanks like Brookings to be critical of Dr. Peter Navarro’s initiatives, since they can’t help being influenced by their advertisers and donors, who have been beneficiaries of the U.S. trade deficit.

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Hugh Campbell is a seasoned financial professional, currently providing subject matter expertise on a variety of regulatory topics, including the Dodd-Frank Act, the Foreign Account Tax Compliance Act (FATCA) and overall compliance monitoring. Hugh has previously held positions as Chief Risk Officer (CRO), Chief Audit Executive (CAE) and Director of Sarbanes-Oxley (SOX) Compliance.

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