You are here

USMCA North American Trade Deal Solves Few Problems

The U.S. may be on the verge of a North American trade deal, but there are bigger problems with trade that Congress should fix, says Competitive Enterprise Institute Senior Fellow Ryan Young:

"The revised NAFTA/USMCA trade agreement should be less urgent for Congress than reining in the President’s out-of-control tariff-making authority. Parts of NAFTA could use an update, but Canada, Mexico, and the United States already have a mostly tariff-free trading relationship. New tariffs passed under President Trump against China, Europe, and numerous allies are a bigger problem that Congress should fix. Trump tariffs are causing thousands of layoffs and billions of dollars of economic damage, everywhere from the steel and auto industries to farm exports. They could cost the U.S. as much as a percentage point of economic growth going forward, or roughly $200 billion per year. The tariffs have also greatly increased the risk of recession. If President Trump wants to pass USMCA so badly, part of the deal should be returning his tariff-making powers to Congress where they belong.​"

Related:

Traders of the Lost Ark 

Common Myths and Facts about Trade