Angelo Katsoras, analysts at NBF Economics and Strategy argued that protectionism will outlast Trump regardless of who wins the midterms and the next presidential election in 2020.
Key Quotes:
“Protectionism will remain part of the American political landscape for the foreseeable future.”
“A quote from a letter sent last April by Democratic Senate leader Chuck Schumer regarding NAFTA negotiations to the Trump administration is a case in point: “I strongly believe that we should not miss this opportunity to protect our dairy producers from Canada’s recent predatory trade practices.”2 Further proof can be found in a bill recently passed with strong bipartisan support called the Foreign Investment Risk Review Modernization Act. This legislation not only strengthens the ability of the Department of Defense to decide who should be allowed to invest in the United States, it also makes it a lot harder for American companies to form joint ventures in countries like China, the main target of this legislation.”
” One of the very few things Democrats and Republicans agree on is that a tougher line should be taken against China’s trade policies. Democrats have veered left on many issues While much has been said about the Republican Party’s ideological shift under Trump, it is important to note that the Democrats, too, are undergoing a major realignment of their own. This can be seen from their growing support for government-provided health insurance, guaranteed income schemes and tuition-free education. A recent Gallup poll found that a higher percentage of Democrats had a more positive view of socialism than of capitalism.”
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