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Free trade

The Reagan Legacy: A Rebranding of a Different Trade Agenda

Strategic Insights

— 1 min read

Ronald Reagan's image has become a marketing tool for President Trump's trade policies, with the Republican leader attempting to rebrand his predecessor's record. However, a closer examination of Reagan's views on trade reveals a stronger commitment to free trade and open markets than Trump's America First agenda. While Reagan did negotiate limits on imported goods to protect domestic producers, he consistently assailed the costs of protection and hailed the virtues of free trade. In contrast, Trump's trade policies have led to a deterioration in US-Canada relations, with the imposition of 10 percent duties on Canadian products.

Key Takeaways:

  • Reagan was a strong advocate for free trade, stating in 1982 that "free trade serves the cause of economic progress, and it serves the cause of world peace."
  • Reagan's trade policy was guided by the three P's: principle, pragmatism, and politics. While he believed in the principle of free trade, he was also pragmatic in recognizing that trade had to be fair and enforceable.
  • Reagan's trade record includes the conclusion of free-trade agreements with Israel and Canada, vetoing protectionist congressional legislation, and denying import relief for the copper, steel, and shoe industries.
  • Trump's trade policies have been widely criticized, with experts noting that protectionism will harm American businesses and consumers.
  • Reagan's views on trade were not solely focused on economic benefits but also emphasized the importance of trade in promoting world peace and stability.

Statistics:

  • In 1982, Reagan stated that "free trade serves the cause of economic progress, and it serves the cause of world peace."
  • During his presidency, Reagan concluded free-trade agreements with Israel and Canada.
  • Reagan vetoed protectionist congressional legislation on multiple occasions.
  • In 1987, Reagan imposed tariffs on some imports from Japan due to unfair trade practices.
  • According to a 2020 article by the New York Times, the US and Canada have seen a significant increase in trade tensions under the Trump administration, with the imposition of 10 percent duties on Canadian products.

Sources:

  • The New York Times, October 5, 2020
  • Douglas A. Irwin, "Clashing Over Commerce: A History of US Trade Policy"
  • Ronald Reagan's radio addresses and speeches, as cited in the article

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