Trade — Fair Rules, American Workers, Global Leadership

Trade liberalization generated $2.6 trillion per year in aggregate US gains. But the distribution was catastrophic: corporate profits' share of GDP rose from 8% to 15.85%, while workers' compensation share fell from 66.6% to 61.9%. The winners won, the losers lost, and the government did almost nothing about it.

When Congress granted China Permanent Normal Trade Relations in 2000, China's share of world manufacturing exports surged from 5% to 15% in a decade. Through at least 2019 — nearly two decades after the shock — affected US communities still had persistently lower employment, lower wages, higher poverty, higher drug and alcohol mortality, and declining public services. Government transfers offset only ~10 cents on the dollar of earnings losses. SSDI payments in affected regions were 30× larger than Trade Adjustment Assistance — the government's primary response was to put displaced workers on disability, not retrain them.

The 2018 steel tariffs 'saved' 8,700–12,700 jobs at a cost of $900,000 per job per year — 13× the average steelworker salary. Downstream manufacturers paid $5.6 billion more in input costs, and downstream job losses (~75,000) far exceeded jobs saved. The 2025 'Liberation Day' blanket tariffs caused apparel prices to rise 17%, food prices to rise 2.8%, and the average household to pay $1,800/year more. The bottom income decile bore 2.5× the burden as a share of income compared to the top decile.

The US goods trade deficit hit a record $1.21 trillion in 2024. Growing trade deficits explain 59% of manufacturing job losses since 1998. The deficit reflects the dollar's role as global reserve currency, domestic underinvestment in manufacturing, and corporate offshoring incentivized by the tax code. Blanket tariffs address none of these.

For American workers, displaced workers finally move into meaningful retraining — not onto disability rolls. 80% wage replacement for two years gives them time to retrain without panic. Full retraining funding, no caps. Relocation assistance. Healthcare bridge. Retirement bridge for workers 55+ who cannot realistically retrain. The Federal Jobs Guarantee (Issue 13) provides $20/hour government jobs immediately while retraining is arranged.

For American manufacturing, the American Industrial Renaissance Act rebuilds domestic capacity in critical sectors — semiconductors, batteries, clean energy, pharmaceuticals, critical minerals. 50 Fraunhofer institutes by year 10 connect university research to manufacturing scale-up. A National Manufacturing Bank provides patient capital for long-horizon investments private markets chronically underfund. All public money comes with prevailing wage and union neutrality — public dollars build union jobs. The CHIPS Act precedent: $280B public spending catalyzed $600B+ in private investment.

For consumers, blanket tariffs end. No more $1,800/year regressive tariff tax hitting low-income families hardest. Strategic tariffs pair with domestic investment so the tariff need shrinks over time (5-year sunset unless capacity actually grew). Supply chain transparency creates market accountability. Pharmaceutical API production becomes domestic — ending dependence on Chinese manufacturers for critical medications.

For trading partners and the global economy, enforceable labor and environmental standards lift workers everywhere — not a race to the bottom. The USMCA Rapid Response Mechanism already helped 42,000+ Mexican workers win better wages and free union elections. The US Carbon Border Adjustment paired with the EU CBAM creates a transatlantic carbon-priced zone covering ~40% of global GDP — the most significant climate-trade instrument in history.