Protectionism returns to US policy agenda

US protectionism is back. Selective trade barriers would hurt employment in the affected industries, but there would be no damage at the macro level and on the stock markets.

After a reasonably good first year in office, ultimately crowned by the success of the tax reform, Donald Trump has resumed the trade policy agenda with the aim of protecting the US workforce from the "carnage" of "bad trade deals". With its decision on January 25, 2018, safeguard tariffs of 30 percent are to be imposed on US solar cell imports and 20 to 50 percent on imports of washing machines. However, the US trade agenda is not yet exhausted here.

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