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Policy Spotlight | The Benefits of Free Trade and How to Get More of It
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Christine McDaniel
 
Free trade allows for voluntary economic exchange between people across national borders. It takes place for the same reason people buy and sell in domestic free markets: because these transactions benefit both parties. Yet free trade continues to be viewed with skepticism by Americans for many reasons, such as concerns over supply chains and national security or the belief that that free trade hurts economic growth, lowers wages, and ships jobs overseas. Policymakers have often argued in favor of tariffs on imported goods and in favor of other barriers to trade as an appropriate response to these fears . . . Whereas protectionist measures such as tariffs may benefit a small minority of US producers, they do so at the expense of everyone else in the economy.
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