Four reasons Trump is hanging tough on trade

President Donald Trump has always made it clear he wanted a new approach to trade.

And in the White House's proposals for new tariffs on steel and aluminium - following similar moves on domestic appliances and green infrastructure - he has revealed the latest push to put America First into action.

Given the statistics since the Second World War suggest that global economic growth is linked to higher levels of free trade, this might seem a contrary approach for the largest economy in the world.

There are a myriad of economic studies which argue that protectionism ultimately reduces employment and increases prices for consumers.

Adam Smith, often described as the father of free market economics, said: "It is the maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy".

Just as it makes sense for a family to "trade" with others for its own well-being - buying and selling goods - it makes the same sense for countries, Adam Smith argued.


Source : bbc