President Trump’s Reciprocity Trade Policy: A Long-Overdue Course Correction
By Councilman Giuseppe Palmeri
March 2025
As a staunch free trade advocate and free-market capitalist, I believe in the power of open markets to drive innovation, competition, and prosperity. However, free trade must also be fair trade. For far too long, America has played the role of the world’s cash cow, allowing other nations to take advantage of our economic strength through lopsided trade deals that benefit them at our expense.
President Donald Trump’s reciprocity trade policy marked a long-overdue shift in how the United States approaches international commerce. Rather than blindly accepting trade imbalances, Trump asserted that America should only grant market access to nations that provide equal and fair access in return. This approach, rooted in common sense, is not protectionist—it is a necessary defense of American workers, industries, and long-term economic sovereignty.
For decades, the United States has tolerated unfair trade practices from countries that manipulate currency, impose steep tariffs on American goods, and erect regulatory barriers while enjoying near-unrestricted access to U.S. markets. The result has been a staggering trade deficit, deindustrialization, and the erosion of American manufacturing jobs.
Take China, for example. Before President Trump took action, China imposed tariffs as high as 25% on American automobiles while the United States levied a mere 2.5% on Chinese cars. This disparity, replicated across multiple industries, placed American businesses at a severe disadvantage. The same pattern existed with the European Union and other trading partners, where U.S. exports faced higher tariffs and burdensome regulations compared to foreign imports flooding our markets.
President Trump addressed these imbalances head-on, leveraging tariffs and tough negotiations to force other nations to the table. His stance was not an attack on free trade—it was a demand for fair trade. As President Ronald Reagan once said, “We should always remember that free trade is a two-way street.” Without reciprocity, free trade ceases to be truly free.
The idea of reciprocal trade is not new—it is a principle that past U.S. leaders have championed. President William McKinley, one of the strongest proponents of reciprocal trade agreements, argued in 1896:
“We ought to take care of our own nation and our own people first. We ought to adopt the policy that will most quickly promote prosperity in the United States, and therefore develop the strength of our country to do good outside our borders.”
Likewise, President Theodore Roosevelt, a staunch defender of American interests, stated:
“Reciprocity must be treated as the handmaiden of protection. The one comes into play as a matter of retaliation, the other as a matter of securing the best bargain possible for our people.”
Secretary of State John Quincy Adams also championed a firm but fair trade approach, insisting that America should engage with other nations on equal terms rather than allowing itself to be exploited.
These leaders understood that while trade fosters economic growth, it must not come at the expense of national strength. President Trump’s policies embraced this same philosophy, using tariffs as a tool to bring other nations to the negotiating table—not to close markets, but to open them fairly.
Critics of Trump’s reciprocity policy often argue that tariffs increase consumer prices and risk trade wars. While short-term disruptions can occur, the broader economic benefit far outweighs the temporary costs. By standing firm, the United States has secured better trade agreements, such as the USMCA, which replaced the disastrous NAFTA and created more balanced trade relationships with Mexico and Canada.
Additionally, strategic tariffs and tough negotiations forced China to agree to stronger intellectual property protections and increased purchases of American goods under the Phase One trade deal. These were tangible wins for American workers and industries—gains that would not have been possible without a willingness to fight for fair treatment.
Moving forward, America must continue to champion free markets while refusing to be taken advantage of. Trade should be guided by the principles of mutual benefit and national interest. If a nation wishes to sell in our markets, they must allow us the same privilege in theirs. This is not economic isolationism—it is economic self-respect.
As President Trump himself said, “The era of economic surrender is over.” That message should remain at the heart of U.S. trade policy for generations to come.