Paul Ryan’s Border Adjustment Tax vs. Donald Trump’s Targeted Tariffs

The 2016 election was a referendum on the imbalanced global trading system. It lost. President Donald Trump’s victory and Bernie Sanders’ insurgency both drew urgency and energy from the millions of livelihoods our trade deficits have cost. The vast U.S. trade deficit siphons away hundreds of billions of dollars each year, has cost the U.S. millions of well-paid manufacturing jobs, and has slowed U.S. economic growth to a crawl. President Trump won the election by promising to address the massive loss of American manufacturing jobs.   As Trump has rightly noted, the chronic U.S. trade deficits reflect, principally, a problem with particular countries which perennially structure their rules, policies, and/or currencies to keep American goods out. According to the Bureau of Economic Analysis, the U.S. trade deficit in goods and services was especially large with four particular countries: China ($312 billion), Germany ($71 billion), Mexico ($61 billion), and...(Read Full Article)