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It takes great courage to challenge the prevailing economic and political doctrines. For the past two decades, questioning the absolute benefits of free trade was forbidden in the United States. However, in 2018, Robert Lighthizer, the US trade representative under President Donald Trump, imposed tariffs on China. This move sparked a broader discussion about decoupling, the connection between trade and diplomacy, and the vision of a post-neoliberal world.
In his compelling book, “No Trade Is Free,” Lighthizer elucidates America’s new approach to trade. He argues that the country’s embrace of a “radical free trade agenda” over the past twenty years is an aberration in its history. Like other successful economies, the United States was built on a foundation of protectionism and government support.
Lighthizer’s career in trade negotiations began when he served as deputy US trade representative under President Ronald Reagan. Although Reagan believed in free trade, he emphasized the importance of safeguarding domestic economic interests. Lighthizer echoes this sentiment, arguing that true free trade requires fair conditions, without market closures, government subsidies, or intellectual property violations.
China was the focal point of many of Lighthizer’s arguments throughout his tenure and in the decades leading up to it. He opposed China’s entry into the World Trade Organization and criticized the decision to grant China “Most Favored Nation” status in 2000. While his economic arguments regarding the US-China trade deficit may be subject to debate, his call for a diversified economy that both produces and consumes resonates strongly in an era where reliance on financialization and fragile global supply chains poses significant risks.
Lighthizer writes with simplicity and clarity, delivering a message that strikes a chord in America’s heartland. He acknowledges the motivation behind different viewpoints on trade, from utilizing economic prowess for diplomatic influence to seeking the cheapest products for consumers. However, he also questions the trade-offs, such as the loss of manufacturing jobs and the impact on American factories.
Various factors have contributed to the decline of the rustbelt, including the “China shock” on US labor markets. Lighthizer, like many Americans from both ends of the political spectrum, attributes blame to China. While he may come across as xenophobic at times, it is difficult to dispute that China’s entry into the WTO did not result in greater political and economic liberalization.
One of the most captivating sections of “No Trade Is Free” chronicles the complex trade negotiations and tariff disputes between China and the US during the Trump administration. The process, as described by Lighthizer, was maddening and filled with intricacies. Nevertheless, it shattered the deliberate ignorance that characterized the US-China trade relationship, leaving a lasting impact and defining Lighthizer’s legacy.
No Trade Is Free: Changing Course, Taking on China, and Helping America’s Workers by Robert Lighthizer, Broadside £25/HarperCollins $32, 384 pages
Rana Foroohar is the FT’s global business columnist
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