Trump's Empty NK Trade Threat Would Injure U.S. the Most

It may have been just a passing tweet, but President Trump's threat to cut off trade with all countries trading with North Korea tells us a lot about mercantilist thinking: The notion that because importers on net send money to exporters, they have all the leverage – as though all of the benefits of trade flow in one direction. The world's reaction to the bluff – a combination of amused disbelief and terror at the economic implications – demonstrates that trade is a symbiotic relationship: Buyers and sellers need each other.