Is Trump a Mercantilist? Tariffs, Trade Wars & the Return of Protectionism

From slapping massive tariffs on imports from China, Japan, and the EU, to rejecting multilateral trade agreements, Trump's stance echoes the core beliefs of mercantilism — an economic philosophy rooted in maximizing exports, minimizing imports, and using government power to protect domestic industries.

Keynote Summary:

• Mercantilism: Dominated European economic thinking from the 16th to 18th centuries; focused on trade as a zero-sum game.
• Trump’s Trade Policy:
  • Massive tariffs on imports, especially from China (up to 54%), Japan, and the EU.
  • Bilateral trade deals preferred over multilateral agreements, enhancing US negotiating power.
  • An “America First” ideology underpinned by reducing trade deficits and reviving domestic manufacturing.
• Modern vs. Mercantilist Economics:
  • Modern economics supports free trade, comparative advantage, and global interdependence as mutually beneficial.
  • Trump frames trade as win-lose, consistent with mercantilist thinking.
• Quote to remember: “To me, the most beautiful word in the dictionary is tariff, and it’s my favourite word.” – Donald Trump (2024)