“It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy . . . . If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.”
-Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776
IPI believes the United States should aggressively pursue trade liberalization, which includes a willingness to lower our own trade barriers even when other countries do not respond reciprocally. Ideally, those efforts include multilateral agreements, such as the Trans-Pacific Partnership, but bilateral agreements can also promote freer trade.
American consumers bear the brunt of the protectionist impulse through higher prices on consumer goods, and American workers are best served when liberalized trade policies facilitate the export of American products throughout the world. At a time when protectionist sentiments are growing, it is important to assert that the U.S. and its workers have nothing to fear from trade, and everything to gain.
EconLog Quotes IPI TradeByte on Congress & Tariffs
Scott Sumner kindly references IPI's recent TradeByte on Congress' impotent response to Trump's tariffs.
Broken Treaties, Broken Government
When did it become okay for a president to break treaties lawfully passed by Congress?
Coalition Letter: Tariffs Will Harm the Economy and Undermine the Trump Economic Agenda
IPI joined a number of free-market groups to urge Congress to argue that tariffs will be harmful to the U.S. economy.
Giving No Truck to Trucking
Policymakers need to begin considering new ways of funding transportation infrastructure that properly allocate the costs of maintenance and repair. We are intrigued by the idea of a commercial vehicle miles travelled tax (VMT-C) that would tax commercial vehicles by the miles driven, but which would omit passenger vehicles.
Let's Pay a Tariff!
Supplier: "Hey, John, we’ve got your order in, but I’m going to have to send you a replacement invoice."
John: "Why?"
Supplier: "Well, I have to add a 25% surcharge to the order."
Here Comes "Tarifflation"
Because tariffs, by design, raise the price of imported goods, tariffs are paid by U.S. consumers and businesses. It’s not inflation, since inflation is about the money supply, but it’s a price increase nonetheless—call it “tarifflation.”
Congress Should Reclaim Its Constitutional Authority Over Tariffs
Whether you support or oppose tariffs, all constitutionalists should agree: the power to tax resides with Congress. Reclaiming tariff authority is vital to preserving the Constitution’s design and the role of Congress in self-government.
A Fundamental Argument About Free Trade
Interesting argument on the fundamentals of trade policy, comparative advantage, etc. at the Law & Liberty blog.
What Donald Trump Can Learn from Switzerland
The Swiss understand that eliminating tariffs helps consumers and the economy. Donald Trump hasn't learned that lesson.
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