For decades, we've been told that "free trade" is the foundation of global prosperity—that open markets and open borders would lift all boats, foster peace, and knit the nations together in mutual growth.
It sounds good. But it has never been true.
In reality, free trade has never truly existed. From ancient caravans to modern shipping lanes, trade has always come with strings attached—duties, taxes, levies, regulations, and strategic interests. Every nation has always looked out for itself. And so it should.
Even in modern history, there is no golden age of free trade to point to. Prior to the 1940s, the United States used a robust system of tariffs to build up its industries and protect American workers. Tariffs weren't an obstacle to greatness—they were a key ingredient in it. For generations, this protectionist strategy allowed the U.S. to become a manufacturing powerhouse, self-reliant and secure.
But after World War II, things began to shift. America, now the undisputed global leader, took on a new role—not just as a producer, but as a benefactor. Under the banners of peace and partnership, it opened its markets, offered military protection, and subsidised the rebuilding of the very nations that once threatened us. The hope was that in doing so, they'd forge lasting alliances and usher in a new era of cooperative capitalism.
Instead, many of those same nations protected their markets, imposed tariffs, and quietly built up their industries—while continuing to enjoy unfettered access to Western consumers. What was sold to us as "free trade" was, in practice, anything but. The West gave. Others took.
This imbalance has hollowed out Western manufacturing, pushed our workers into lower-wage service sectors, and flooded our economy with cheap, subpar goods produced under standards we would never accept for our own citizens. Worse yet, we've made ourselves strategically vulnerable—dangerously reliant on nations that do not share our values, and in some cases, openly oppose them.
China is the most glaring example. For decades, China has manipulated its currency, subsidised its state-owned industries, stolen intellectual property, and dumped goods on global markets at artificially low prices. Meanwhile, it shields its own domestic markets with tariffs and regulations, all while enjoying "Most Favored Nation" status and a seat at the World Trade Organization table.
All of this has been allowed in the name of "free trade."
Thankfully, in recent years, a new approach has emerged—one that recognises the reality that trade must be fair, not just free. The Trump administration, often maligned for its hardball tactics, at least had the courage to say out loud what most of us already knew: the global system is rigged, and America has been taken advantage of for far too long.
Tariffs were reintroduced not as punishment, but as leverage—to restore balance, to bring hostile actors to the negotiating table, and to prioritise American workers over abstract economic theories. The goal wasn't to isolate the U.S. from the world, but to protect our national interest and ensure our industries could compete on a level playing field.
But even more than that, we need a philosophical shift.
The goal should not be global dependency—it should be national self-reliance. Our economy should be rooted in our soil, our people, and our values. We should produce at home what we can, trade selectively for what we can't, and never again make ourselves dependent on adversaries for essential goods. Energy, steel, semiconductors, medicine—these should be ours, not outsourced.
Free trade may be an elegant idea in theory, but in practice, it is a mirage. Every nation acts in its own self-interest—and it is time that we all do the same.
A sovereign nation does not rely on others for its survival. It does not sacrifice its workers on the altar of cheap imports. And it does not pretend that fairness will emerge from a system where only one side plays by the rules.
If we want real prosperity—durable, honest, and just—we must return to economic principles that served us well for over a century: protect what matters, build what you need, and trade only when it strengthens your nation.
Free trade has never existed. And in a sane world, it never should.
https://www.zerohedge.com/geopolitical/no-such-thing-free-trade
"For as long as trade has existed, there have been duties, fees, levies, tariffs, or taxes that have been applied in all shapes and sizes on goods entering a country. Some folks continue to promote the idea that free trade exists, but it has never truly existed.
Fair and free trade might be an ideal vision worth working toward, but it is common knowledge that nations operate in their own interests and often bend trade agreements
Up until the 1940s, the United States utilized a range of tariffs to grab a major portion of world trade.
For decades, the United States has helped to subsidize much of the world both economically and through its broad security umbrella.
This was part of an attempt to forge more global allies as well as assist with economic development. However, many nations came to depend on the American gravy train, yet at the same time protected their own markets through tariffs and other barriers to foreign businesses that wanted to compete in their markets. This imbalance has become unsustainable.
President Donald Trump's threat of slapping tariffs on a whole host of nations was carried out for a number of reasons.
Trump is zeroing in on the worst trade barrier offenders, most of which are in Asia. They enjoy trade surpluses due to high fees charged on imported foreign goods, currency manipulation, government-subsidized industries, and the dumping of cheap products abroad. These actions distort fair and free market forces.
In order to recalibrate trade and reduce our trade deficit, reciprocal tariffs will be paused for 90 days on nations that are actually opposed to free trade but are willing to change course. Uncertain times create market gyrations, but the stock market is often driven by events, investor sentiment, and speculation. It represents only partial aspects of the overall economy, while small businesses are a large portion of the economy.
Feigned outrage emanating from many capitals regarding America's "bullying" tactics is ironic, because for decades, foes and "friends" alike have already targeted U.S. goods with taxes and subsidies. Some countries, such as China, have also used a Value Added Tax (VAT), while their goods work their way through a number of countries before arriving at a final destination. China has victimized both its adversaries and allies for decades with unfair trade.
For many years, America has allowed foreign nations to take us to the cleaners by protecting their own markets as they charge exorbitant fees on very specific American goods. However, while the United States has allowed an array of cheaper products to be imported, many nations make it almost impossible for our companies to penetrate their economies.
This has adversely affected American workers as well as consumer and government debt. Moreover, many products from developing nations lack the labor standards and quality control mechanisms that are taken for granted in the West.
However, there might be some good news on the horizon.
We have an administration that finally has acted to place the national interest first instead of accommodating nations that practice predatory trade through barriers and obscene levels of taxes on American goods.
Threatening reciprocal tariffs on high-tariff nations can have a number of effects.
- First, more pliable nations will be eager to negotiate to either eliminate their trade barriers or reduce them so that supply chains can continue with the United States. These events are beginning to unfold as over 70 nations are willing to come to the table.
- Next, some developed countries will also be open to bargaining, while others might retaliate with targeted barriers to American goods and investments. China, along with several European Union nations, is the main culprit in protectionist trade while claiming to practice free trade. The Trump team could arm-twist resistant Asian and European allies to lower barriers, or else our military security presence will be diminished, and they will have to fend for themselves against adversaries.
- Third, the application of stiff tariffs on China is likely the opening salvo in eventual decoupling from the country in trade that affects our national security. The United States needs leverage against a nation that bribes, cheats, and deceives in the global economy in a form of economic warfare. China has never truly kept the promises it has made as a recipient of our "most favored nation" status and under World Trade Organization (WTO) agreements.
Nations that abide by the WTO's rules of commerce can also start to distance themselves from trade with China in favor of friendlier markets and perhaps achieve greater self-reliance in manufacturing. If particular nations slash or drop their tariffs and trade walls, the United States can pause on tariffs in the coming months. That could set in motion genuine competition minus market distortions. However, there must be "trust but verify" protocols in place to ensure that any barriers and tariff loopholes don't rise again like a phoenix. Consequently, fairer and freer trade could possibly ensue over the long term.
According to transactional Trump, who often turns on a dime with decisions, deals are always possible even with recalcitrant nations.
If tariffs are lowered across the board and key manufacturing can make a comeback here at home, real prosperity is a strong probability.
Combine that with domestic deregulation, government downsizing, and long-term tax cuts, and economic growth will accelerate. This, in turn, can increase tax revenues, which can help to tackle the national debt and yearly deficits—and unleash the proverbial golden age.