No to Protectionism Mr. President

from IBD:

High Tariffs And Weak Dollar Are No Way To Make America Great Again

As we’ve noted many times, President Trump’s first year was a rousing success when it comes to economic policy. But one new troubling exception has recently emerged: The Trump administration’s advocacy of a weaker dollar and trade protection. It’s a big mistake.

 In recent months, the U.S. dollar has weakened noticeably against other currencies. The Fed’s trade-weighted dollar index, which measures the dollar’s value against all of our trading partners, after adjusting for volume of trade, has fallen just over 8% in the past year, to a three-year low. That’s a sizable decline.

What concerns us is that the pace has picked up since the start of this year, with the dollar falling more than 3% since January 1 as talk of more trade protection for the U.S. economy gathers steam.  More importantly, the Trump administration has all but announced an explicit policy goal of having a weaker dollar. read more