The Art of the Trade Deal: Priorities for Policy
The language of the Trump campaign indicates possible major changes in American trade policy. These changes should not focus on eliminating or drastically reducing the trade deficit, as the evidence shows this is unlikely to create jobs.
Our biggest trade relationship, with China, has multiple problems. Currency manipulation wins attention but may be an outdated concern. Right now, Chinese subsidies are blocking American exports and China is stealing intellectual property. The US should strongly consider retaliation in these areas.
Both Americans who benefit from trade and US trade partners would be immensely reassured if the restrictions the Trump administration finds necessary are coupled with steps to encourage more trade. An example is seeking a free trade agreement with the United Kingdom.