Tariffs Will Destroy the Best Trade Deficit Cure: Shannon O’Neil

Trump’s upcoming tariff barrage is supposed to reduce trade deficits by cutting out imports. Forgotten amid all the administration’s threats and justifications is the other side of the trade equation. More exports not only reduce deficits but also bring broader economic benefits through higher-paying jobs and greater innovation. Yet in a world of global supply chains, boosting exports means upping imports as well. Widespread tariff hikes will also hold back US-based exporters.

The US is not a big trader. Just a fourth of its economy comes from international exchanges, far behind other OECD countries, in which trade averages closer to ...