Source: Adam Smith Institute
by Madsen Pirie
“At its core, mercantilism emphasizes using tariffs and trade restrictions to boost national exports, limit imports, and accumulate wealth or power, rather than relying on free-market trade flows to optimize global welfare. The current trade strategy of President Trump and his administration largely echoes those principles, with aggressive and broad tariffs on imports, plus reciprocal tariffs meant to penalize trade partners. Some commentators call this a new mercantilism,adapted for 21st-century global trade conflicts. It is characterized by combining tariffs, trade restrictions, and industrial policy aimed at re-shoring manufacturing and reducing dependency on rival powers. … in terms of motivation and tools, the US seems to be embracing a mercantilist trade-power strategy again, even if it doesn’t use the same rhetoric as 18th-century mercantilist states.” (12/10/25)