Trade

Section 337 was made into law to help address unfair foreign trade practices. It should be used vigorously to prevent the import of IP-infringing products from firms that systemically benefit from unfair government practices in non-market, non-rule-of-law economies such as China.

What is the correct economic strategy for a nation?

The president-elect is right to reject the consensus opinion in Washington that trade deficits don’t matter. But tariffs won’t solve the problem. The better solution is to drive down the value of the dollar and drive up domestic production in advanced industries.

There is a huge opportunity to change the technology narrative of recent years, making it less about fear, potential downsides and things to blame, and more about national development, competitiveness, and prosperity in an “America First” context.

Reviving U.S. semiconductor manufacturing requires targeted solutions—not broad tariffs that raise costs and hinder global competitiveness.

President-elect Trump believes the era of U.S.-led globalization has been harmful to America. One way he intends to change course is by imposing tariffs on nations that take advantage of U.S. goodwill and leadership. At greatest risk will be nations with low military budgets, high trade balances, policy barriers to reciprocal trade, and soft positions on China.

China accounted for 35 percent of global manufacturing as of 2023. The United States and Western allies should launch a global competition to establish competing manufacturing hubs in countries that commit to reforming restrictive regulations, reducing corruption, boosting skill development, and ensuring adequate financial incentives and infrastructure.

The European Union needs to pay a short-term price for long-term gain by standing alongside the United States in taking tough action to hold China accountable for its IP theft, dumping, and over-subsidizing.

The United States and Japan must make a concerted effort to mutually advance their economic security and counter Chinese economic coercion, while bringing other allied nations aboard the enterprise to the greatest extent possible.

China’s long-standing and rampant “innovation mercantilist” policies harm global innovation by taking market share and revenues from more-innovative foreign competitors, which diminishes the resources they can invest in research and development toward further innovation. ITIF has conducted extensive analysis on this issue.