Balancing Trade, Manufacturing, and Economic Growth in the Era of Tariffs

"Goods produced under conditions which do not meet a rudimentary standard to decency should be regarded as contraband and not allowed to pollute the channels of international commerce." ~ Franklin D. Roosevelt

"That's at the root of the human interaction: fair trade." ~ Billy Corgan

"But I believe in fair trade, and I will tell you, I have many, many friends heading up corporations, and people that do just business in China, they say it's virtually impossible. It's very, very hard to come into China. And yet, we welcome them with open arms." ~ Donald Trump

"I just want to be fair. I want to be a firm and fair trader." ~ Donald Trump

"I am a firm believer in free but fair trade. However the United States should not be on the losing end of trade agreements that are not enforced. It is time that we make China play fairly." ~ Elizabeth Dole

World trade takes decades to create equitable balances that must be operated in equilibrium of free trade, fair trade, and balanced trade. Powerful economies like the United States and China must work with weak and small economies in a way that promotes growth in both and not damage economies.

The past 40 years we have witnessed massive deindustrialization in America and Canada with most of the factories shut down and hundreds of thousands of workers lost due to globalization and offshoring. Though trade agreements and economic efficiencies have been factors, the outcome has been a lopsided sharing of economic benefits and a reduction in American and Canadian production capability.

However, to counter these trade imbalances, the Trump administration has imposed sweeping tariffs on various nations in the world. Tariffs are now a bargaining chip to restart trade negotiations and seek better trade terms based on this administration. This is not good to slap such protectionist tariff policies against allies and foes because of the potential risks such as retaliatory tariffs from a hundred different countries causing massive global disruption of supply chains and increased global recession, increased costs for consumers and businesses.

The American action of placing tariffs on all nations creates an economic challenge to globalization and automation, that America must focus efforts on trying to reshore key sectors as well as establishing its global competitiveness in emerging sectors.

What it involves is the investment in less automated and less AI-exposed manufacturing industries as well as being at the lead with regard to technology and innovation. Three sectors such as custom and skilled production, construction materials and infrastructure, and medical production and pharmaceuticals will help American and Canadian remanufacturing or reindustrialization of their domestic economies.

Skilled trades and special manufacturing rely largely on human know-how and expertise and are less fragile to automation.

Aerospace, precision machine work, and shipbuilding are some of those industries that require a level of flexibility and human labour that cannot be fully replaced with robots. In these industries, investment can also assist in giving rebirth to apprenticeship training and offering re-skill or re-education of the labour market population.

Materials used in construction and infrastructure are also an important industry. With upgrades needed to roads, bridges, sanitation and water systems and power lines, America and Canada must do some massive rebuilding. By growing domestic production of steel, cement, and prefab housing, these countries can create stable employment while strengthening their industrial base.

There are huge vulnerabilities of medical and pharmaceutical manufacturing in United States and in Canada. Because of national security for both United States and Canada, both countries should make it a priority to produce key supplies such as personal protective gear (PPE), vaccines, and medicine domestically or in tandem with closer integrated economic ties. By bringing more of this industry onto North America, it can reduce foreign reliance on its makers and safeguard public health, and at the same time employ hundreds of thousands of individuals in both United States and in Canada.

The domestic support of these industries can be achieved by a partnership between private industry and the government. I know it sounds absolutely ridiculous for conservative or Republican politicians to think or fathom the thought of government involvement, but to create a more equitable fair trade situation where it creates jobs in both United States and in Canada and integrates both economies closer together without harming either countries job opportunities, public policy can provide incentives such as grants, tax breaks, and infrastructure investment to spur growth, creating a powerful integrated targeted mixed market economics that can compete with China and other large trading blocks.

Private industry can also drive innovation, efficiency, and scalability in these industries. A balance, supports industries grow without relying too heavily on government support.

If there's more of an integrated economic and political partnership with Canada and United States with a fair and equitable understanding of improving job opportunities in both countries, North America can become a powerhouse in world trade, especially with the resources that Canada possesses and the innovation and technology abilities of United States private sector.