Protectionist Strategies

A tidal wave of protectionist reprisal on Capitol Hill threatens nations exporting goods to the United States and may wreak havoc with President Reagan’s relations with Congress. More than seventy trade-protection bills had been filed before July 4, and more were introduced after Congress reconvened. Congress wants Mr. Reagan to stem the flood of imports by executive action (without Congress) and is warning him that inaction or, worse, opposition to the bills will be an albatross for Republicans up for re-election in 1986.

The protectionist impetus derives partly from the bloating trade deficit and partly from fear of America’s “deindustrialization.” Between 1983 and 1984, the trade deficit ballooned from $69 billion to $123 billion, and it is expected to reach $150 billion in 1985, making the U.S. a debtor nation (the deficit being greater than our overseas investment surplus) for the first time since 1914.

JM

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John McLaughlin

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A tidal wave of protectionist reprisal on Capitol Hill threatens nations exporting goods to the United States and may wreak havoc with President Reagan’s relations with Congress. More than seventy trade-protection bills had been filed before July 4, and more were introduced after Congress reconvened. Congress wants Mr. Reagan to stem the flood of imports by executive action (without Congress) and is warning him that inaction or, worse, opposition to the bills will be an albatross for Republicans up for re-election in 1986.

The protectionist impetus derives partly from the bloating trade deficit and partly from fear of America’s “deindustrialization.” Between 1983 and 1984, the trade deficit ballooned from $69 billion to $123 billion, and it is expected to reach $150 billion in 1985, making the U.S. a debtor nation (the deficit being greater than our overseas investment surplus) for the first time since 1914.