What Rebalancing American Trade Policy Should Mean

One of ALI’s key policy pillars is that U.S. global policies should lead to inclusive and sustainable trade at home and abroad. Tariffs are a regressive tax that hit the poorest American consumers the hardest. At the same time, the highest tariffs U.S. are typically on textiles and agriculture products, which tend to be the main exports of the world’s poorest countries. The current penchant for increasing tariffs disproportionally hits disadvantaged groups both at home and abroad. Developing policy initiatives that can simultaneously foster inclusive growth both in the U.S. and in the developing world needs to be a top priority.  Kim Elliott’s excellent piece “Developing a More Inclusive US Trade Policy at Home and Abroad,” addresses just that issue.  Below is a link to an executive summary of her paper, with a link to the full piece.