Ronald Reagan: Protectionist
He advocated protectionism early in his 1980 campaign, saying to the U.S. auto industry: "Japan is part of the problem. This is where government can be legitimately involved. That is, to convince the Japanese in one way or another that, in their own interests, that deluge of cars must be slowed while our industry gets back on its feet..."
When he imposed a 100% tariff on selected Japanese electronic products for allegedly "dumping" computer memory chips, he said he did it "to enforce the principles of free and fair trade."
Treasury Secretary James A. Baker has boasted about the protectionist record: Reagan "has granted more import relief to U.S. industry than any of his predecessors in more than half a century."
He:
Raised tariffs on Canadian lumber and cedar shingles;
Removed third-world countries on several occasions from the duty-free import program for developing nations;
Imposed a 45% duty on Japanese motorcycles for the benefit of Harley Davidson
Demanded that Taiwan, West Germany, Japan, and Switzerland restrain their exports of machine tools;
Tightened considerably the quotas on imported sugar;
Those industries on your "Reagan" list? How are they doing now?
The World Bank estimates that import restrictions in 1984 had the same effect as a 66% income tax surcharge on America's poorest citizens. Less obvious is the harm to American producers, who lose exports and pay more for capital goods because of protectionism. For example, everyone, including the beleaguered American auto industry, has to pay more for steel because of the Reagan administration's restrictions on imports. Even the steel industry is hurt because artificially high prices stimulate the search for alternative materials.