Crisis could lead to creeping U.S. protectionism
The world economic crisis has increased chances the United States will erect new barriers to trade but broad tariff increases, like those often blamed for causing the Great Depression, are unlikely, analysts said.
President-elect Barack Obama’s criticism of China’s currency practices, the North American Free Trade Agreement and other trade deals have raised concern his inauguration on Tuesday could usher in an era of U.S. protectionism.
“I think President Obama is going to talk more about getting tough on trade than actually doing anything because I think he and his economic advisers realize it would be bad for the U.S. economy to raise costs for U.S. consumers and jeopardize U.S. exports abroad,” said Dan Griswold, head of the free market Cato Institute’s trade policy shop.
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