Sunday, October 26, 2025

On Tariiffs, Free Trade and Ronald Reagan

Four things can be true at the same time 1. Free trade has optimal utility in the long term. 2. Tariffs have a working purpose in the short run to punish those who don't play by the rules necessary for free trade. However it is not a long term solution. Tariffs lead to counter tariffs and trade wars. 3. Ronald Reagan was not a fan of tariffs..hell he set up the FTA which evolved into NAFTA under George H W Bush. 4. NAFTA needed to be renegotiated to fit in with the changing economic environment. This did occur under Trump's First term.

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