The Reagan Legacy on Trade: A Misguided Defense by Donald Trump

Strategic Insights -

As the 2018 World Series unfolded, the government of Ontario sparked controversy by airing an anti-tariff advertisement featuring a 1982 Ronald Reagan radio address. President Trump, outraged by the ad's content, impulsively severed trade talks with Canada and threatened to impose a 10 percent duty on Canadian products. This incident highlights a disturbing trend: Trump's attempts to rebrand Reagan's trade legacy as an justification for his own protectionist agenda.

Key Takeaways:

  • Ronald Reagan's trade policy was rooted in the three P's: principle, pragmatism, and politics. He consistently championed free trade and opposed protectionism.
  • While Reagan was a strong advocate for free trade, he was also pragmatic. He enforced trade agreements and addressed unfair trade practices.
  • Reagan's record on trade was one of caution and measured action. He imposed tariffs on certain imports only when there were violations of trade agreements.
  • Trump's claim that Reagan "loved tariffs" and was "very bad on trade" is a distortion of the historical record.
  • Reagan would not have approved of Trump's protectionist trade policies, particularly when aimed at allies like Canada.
  • Reagan predicted the adverse outcomes of protectionist policies, warning that they would harm American farmers and weaken the economy.
  • A 1988 speech by Reagan has resonance today, cautioning against "demagogues" who use protectionism as a "cheap form of nationalism" to weaken the economy and national security.

Statistics:

  • 1982: Reagan stated that "Free trade serves the cause of economic progress, and it serves the cause of world peace" (Source: Reagan radio address).
  • 1985: Reagan said that "our trade policy rests firmly on the foundation of free and open markets - free trade" (Source: Reagan speech).
  • 1985: Reagan predicted that farmers would be among the first victims of a protectionist trade war (Source: Reagan speech).
  • 1988: Reagan stated that protectionism was being used as a "cheap form of nationalism" to weaken the economy and national security (Source: Reagan speech).

Sources:

  • Reagan, R. (1982). Radio address on free trade. Retrieved from
  • Reagan, R. (1985). Speech on trade policy. Retrieved from
  • Niskanen, W. (as quoted in Irwin, D. A.). The Reagan administration's trade strategy was "to build a five-foot trade wall in order to deter a 10-foot wall" that Congress would have built (Source: Irwin, D. A. Clashing Over Commerce: A History of US Trade Policy).
  • Irwin, D. A. (2020). Clashing Over Commerce: A History of US Trade Policy. New York: Oxford University Press.