When asked if he would continue Trump’s use of tariffs, Bernie Sanders said that he would, but only in a “rational” way. He didn’t make any effort to explain what he meant by that. So what could we expect from President Sanders?
Here is my best guess:
- Trade agreements, such as the TPP, are significant for geopolitical as well as economic reasons. Sanders is oblivious to that fact. Do not anticipate any new agreements during his administration.
- Historically, from a purely economic perspective, the point of trade agreements has been to improve access for American companies and to reduce costs for consumers. Sanders ignores their benefits and thinks they just make money for giant corporations, who are the enemy, regardless of where they are located. That’s another reason for him to oppose them.
- To the extent that there is a discernible rationale for Trump’s tariffs, it is the traditional one of increasing access and profits for American companies. Sanders, on the other hand, would probably use tariffs as a lever to drive up wages for both American and foreign workers. He would also, in all likelihood, attempt to use them as a device to improve human rights in authoritarian countries.
- Sanders’ tariffs would increase costs to American consumers and reduce corporate profits without having any visible effect on wages or the behavior of foreign governments. They would be as miserable a failure as Trump’s, and would further damage America’s image overseas.