- Cutting corporate taxes would help the United States and the world economy
- Import barriers are unlikely to enhance growth and boost wages
- If the ECB insists on quantitative easing and the Fed raises interest rates, President Trump may start a trade war with Europe
True to his campaign pledge to make “America first,” President Donald Trump has repeatedly asserted that he will do all it takes to boost wages and corporate profits. The slogan is understood as a promise to enforce aggressive trade policies and has become one of the main targets of Mr. Trump’s opponents. One ought to remember, however, that import tariffs are only one of the two pillars of the new president’s economic policy. The other consists of significant corporate tax cuts, whose aim is to encourage local entrepreneurs and lure foreign manufacturers into the United States.