There They Go Again: GOP Anti-Free Trade Sentiment On The Rise?

Like a blast from a tired old past, anti-free trade sentiment has been rearing its head in some Republican quarters of late. This certainly goes against the traditional position of conservatives which holds that free and fair trade benefits the American economy and consumers substantially and is, in fact, The American Way. As such, conservatives must once again firmly reject voices in the GOP who find it preferable to isolate and hinder the United States on the world economic stage.

Free trade is good. Free trade works. It leads to innovation and allows consumers greater choice, to name but a few benefits. Recall the Reagan era when Republicans fought protectionist Democrats on securing freer and fairer trade resulting in a higher standard of living for all Americans. Less government meddling, more freedom. This is what the GOP — particularly its conservative wing — is supposed to stand for.

Simply put, if the idea of economic isolationism takes root, it could decimate the American economy. A 2022 Cato Institute policy analysis titled “The (Updated) Case for Free Trade” concluded that “the seen and unseen economic benefits that free trade has delivered to countless individuals, businesses, and communities in America are undeniable and irreplaceable” and “the lone alternative to free trade, protectionism, has repeatedly proven to impose high costs for minimal benefits.” Isolating our economy through high taxes for imports, also known as tariffs, and other protectionist policies will make Americans poorer because we will consume less and have less choice of products. Protectionism leads to stagnating growth and protecting American companies from having to innovate to compete. Conservatives should want government out of the way of trade.

A Competitive Enterprise Institute (CEI) policy paper also published in 2022 affirmed that “trade is a core value of civilization.” Think about it this way: allowing one company that is in another nation to offer something in trade, cash, or barter is much healthier and more American than using force and pressure to prevent those transactions. Allowing government bureaucrats to make choices for American consumers is abhorrent.

There are many examples of foreign companies appreciated by American consumers which help to show the great benefits of free trade. One that has recently broken into the American market by storm is a so-called fast fashion company based in Singapore, SHEIN. It has become very successful in a short period of time and has become a case study of how some American companies, cheered on by some friendly politicians including Republicans in Congress, are pushing hard for protectionism over competition. SHEIN’s massive success in the American market is also a case study of the choice benefits to consumers that would be nonexistent without free trade. Nevertheless, the knives are out for SHEIN.

While their success is a problem for some, SHEIN’s actual offense — at least in the eyes of some politicians — seems likely to be that they originated in China. Because our government is deeply (and of course rightfully) concerned about China as a national security threat, many politicians have conflated privately held Chinese companies with the communist Chinese government. They tend to argue that everything from China is inherently dangerous, even when many of the companies originating there have nothing to do with the government. This rhetoric may serve politicians well politically, but playing protectionist pool with China would have massive negative consequences on the American economy.

I don’t really care about the left wing of the Democratic Party that is blinded by a hatred of all things capitalism, but I am troubled that many Republicans seem to ignore that a large amount of the consumer products that make our nation competitive are manufactured in China — iPhones being one obvious example. Computers and electronic devices are overwhelmingly manufactured in China. The bulk of toys and furniture are manufactured in China. The list goes on and on and, while talking of cutting off all commerce with China might make for a good applause line at a Rust Belt political rally, the reality of such a thing would be catastrophic — and Republicans who play fast and loose with economic truths know it.

All in all, protectionism arguments are tired arguments — and Republicans trying to resurrect them for whatever reasons ought to give it a rest. WWRD (What Would Reagan Do), guys? Free trade is good, and the Republican agenda going forward should promote more, not less, of it with China and other nations.

Now more than ever, the concept of economic isolation is a horrible one for the American economy and consumers. Republicans, just say no.