Like them or not, tariffs, quotas, and tax incentives to keep manufacturers invested locally, are now a tool that Democratic and Republican Presidents are using. The WSJ called tariffs a “tool of geopolitics”. If trade was remotely free (it’s not), or fair (it isn’t), none of these tools would be required. If the U.S. wants to have an industrial base, just being an innovator is not enough.

A new economic view of globalization is taking shape. It is no longer a Trump idea to impose tariffs on countries or enforce trade laws among allies like Mexico. Europe is talking about tariffs on wind turbines and EVs from China, and Turkey imposed a 40% tariffs on Chinese cars this week, with a minimum tariff of $7,000.

“Recognizing and taking action against the negative impacts of globalization does not imply rejecting globalization. A renewed, robust, worker-centered focus on industrial policy should not be conflated with reduced trade or less financial openness. In fact, the evidence shows that such flows remain robust,” Bernstein said.

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