Trump's trade plan will hurt the people it claims to help

These kinds of trade-offs in trade policy are by no means hypothetical. In fact, it’s possible to see a miniature version of them playing out right now. Earlier this year, the U.S. slapped tariffs as high as 266 percent on some forms of Chinese steel because of a U.S. government finding that the Chinese were “dumping” their products on the market — in other words, selling steel at unreasonably low prices, well below cost, in order to prop up the Chinese steel industry.

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Steelmakers in the U.S. are thrilled but, as the Wall Street Journal reported in June, the tariffs are a “double-edged sword.” Companies that manufacture goods with imported steel say they will have to raise prices and one executive, from a firm that manufacturers school chalkboards, told the Journal that his company might have to shutter a factory because customers would be cutting back on orders.

That’s not an argument against such targeted tariffs, which arguably represent the kind of retaliatory and remedial action necessary to keep a free trade regime functioning. There’s a balance to be struck, between easing restrictions on trade and reinforcing the standards that matter. Even among relatively like-minded economists, there’s a vigorous debate about where exactly that balance should be.

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