• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

1

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Finance

Here’s the Argument Donald Trump Should Have Made on NAFTA and Free Trade

By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
By
Chris Matthews
Chris Matthews
Down Arrow Button Icon
September 27, 2016, 3:10 PM ET
APTOPIX Campaign 2016 Debate
Republican presidential nominee Donald Trump listens to Democratic presidential nominee Hillary Clinton during the presidential debate at Hofstra University in Hempstead, N.Y., Monday, Sept. 26, 2016. (AP Photo/Patrick Semansky)Patrick Semansky — AP
Add Fortune on Google for similar content.

One of the genuinely unique policy ideas Donald Trump has brought to the national stage is a deep skepticism of the once-bipartisan consensus on free trade.

Indeed, most political observers think Trump had his best moments during the first presidential debate when discussing trade. But he could have done better.

The real estate mogul has cannily understood that despite polling that indicates most Americans see free trade as more of an opportunity than a threat, a large and motivated minority of voters have been yearning for a politician to call into question whether the trade deals we have on the books are good for American workers.

But Trump bungled too many trade-related facts and spent too much time focusing on the role of manufacturing in the economy—when most Americans don’t work in export-dependent manufacturing—for the issue to be a slam-dunk for him. So we’ve prepared a tip sheet for Trump on how to really body slam Clinton in the next debate. Here are 3 ways Trump can do better on trade:

Get Up to Speed on Currency Manipulation. Donald Trump has long complained about China devaluing its currency in order to make its products cheaper and to undercut American competitors. This would have been a valid complaint . . . in 2010. But since that time China has allowed its currency to appreciate in order to prevent Chinese businesses and citizens from sending their savings abroad.

That doesn’t mean that currency manipulation isn’t a problem. In April the U.S. Treasury Department put five countries on a currency manipulation “monitoring list,” including China, Taiwan, Japan, Germany, and South Korea. Of those countries, Trump would be smarter to focus on Germany, Taiwan, and Japan. Although Germany does not actively intervene in currency markets to drive down the price of its currency, it does benefit from being in a currency union with the rest of the Europe, a dynamic that certainly helps maintain Germany’s record trade surplus.

Japan is another country that very actively manipulates currency markets, and the Economic Policy Institute recently estimated that Japan’s meddling with the value of the yen relative to the dollar cost the U.S. economy 896,600 U.S. jobs in 2013 alone. That’s so much more significant than the estimated job losses from NAFTA (roughly 70,000 per year) that it’s inconceivable why Trump hasn’t emphasized the issue more.

Finally, the issue of currency manipulation is one that Trump could likely court international support to address. Other countries including, NAFTA partners Mexico and Canada, as well as the United Kingdom, also are likely victims of currency manipulation. By courting like minded voices in those countries, Trump could burnish his diplomatic bonafides at the same time that he draws attention to the issue.

Don’t Just Focus on Manufacturing. While it’s true that manufacturing employment in the United States has been on the decline for decades, and that this trend has cause real economic suffering in parts of America, the simple fact is that too few Americans are employed in manufacturing for it to be an issue that really animates the electorate.

Take for instance, the Pittsburgh metropolitan area, a key so-called “rustbelt” city in the all-important swing state of Pennsylvania. Roughly 3 times as many people in metro area work in education and health services than do manufacturing. Trump must assuage these voters fears that his tough talk on trade policies could cause disturbances in the broader economy.

Get Specific About Foreign Subsidies: Though government activism isn’t widely seen as effective in Republican circles, there’s plenty of evidence that trade policy has at the very least boosted employment in countries like China and Korea. Trump has often called trade deals like NAFTA “disasters”, but what, exactly, is so bad about them?

Michael Pettis, a professor of finance and economics at Peking University, is an expert in the Chinese economy, and he has argued for years that China’s trade surplus with the United States and the rest of the world is driven by much stronger forces that the value of the Chinese currency or differences in tariff policy. Those policies include giving access to free land to select businesses (there is no land ownership in China), offering below-market loans, the near total lack of environmental standards, and policies that suppress wage growth. It’s difficult for outside observers to understand the extent or impact of such policies, but until American politicians admit that trade policy isn’t just about tariffs and protections for intellectual policy,trade deficits will likely persist.

Hillary Clinton’s record is not nearly as free-trade friendly as Bernie Sanders and Donald Trump like to paint it, but the political establishment has been conveniently ignoring these issues for decades now, and Donald Trump could effectively paint Clinton as negligent in this regard.

But effectively mounting these arguments would require Trump to incorporate new facts into his argument, something he has been resistant to do thus far. Perhaps the bad reviews he has received for his performance Monday night will chasten him, and we’ll see a revamped and focused presentation on trade next time around.

About the Author
By Chris Matthews
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Finance

The ‘Trump Trade’ is turning into a loser in the stock market
InvestingStock
The ‘Trump Trade’ is turning into a loser in the stock market
By Geoffrey Morgan, Joel Leon and BloombergJuly 25, 2026
1 hour ago
Trump pulls back after Iran crosses his red line as U.S. military breaks two-week streak of airstrikes amid talks for potential Hormuz deal
Middle EastIran
Trump pulls back after Iran crosses his red line as U.S. military breaks two-week streak of airstrikes amid talks for potential Hormuz deal
By Jason MaJuly 25, 2026
2 hours ago
U.S. military suddenly goes silent on Iran airstrikes while Houthi rebels and Saudi Arabia exchange attacks in battle over Red Sea shipping
EnergyIran
U.S. military suddenly goes silent on Iran airstrikes while Houthi rebels and Saudi Arabia exchange attacks in battle over Red Sea shipping
By Samy Magdy, Giovanna Dell'Orto and The Associated PressJuly 25, 2026
7 hours ago
Can Apple’s incoming CEO bring back the product design mojo of the Steve Jobs era?
MagazineApple
Can Apple’s incoming CEO bring back the product design mojo of the Steve Jobs era?
By Sebastian HerreraJuly 25, 2026
8 hours ago
t
EconomyInflation
Meet the Americans learning to go without after the biggest grocery inflation in 50 years
By Dee-Ann Durbin, Terry Tang, Maggie Scales, Sandy Guatibonza, Hikari Mae Hida and The Associated PressJuly 25, 2026
8 hours ago
g
EconomyInflation
‘Rockets and feathers’: Economists say grocery prices shoot up like the first, fall like the second
By Dee-Ann Durbin and The Associated PressJuly 25, 2026
8 hours ago

Most Popular

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
10 hours ago
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
2 days ago
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
3 days ago
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
Success
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
By Orianna Rosa RoyleJuly 25, 2026
12 hours ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
2 days ago
Jensen Huang just used his first ever X post to warn the AI industry not to make the mistake that software narrowly avoided in the 1980s
AI
Jensen Huang just used his first ever X post to warn the AI industry not to make the mistake that software narrowly avoided in the 1980s
By Nick LichtenbergJuly 24, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.