In the aftermath of a federal trade court blocking most of Trump’s tariffs, a new Economic Policy Institute report examines how the U.S. approach to globalization has gone from bad to worse under Trump—and proposes a progressive policy agenda instead that tackles the pressing challenges that globalization poses to U.S. workers.

Led by corporate interests, U.S. trade agreements from NAFTA onward have failed U.S. workers. These agreements exacerbated globalization’s drag on wage growth for workers without a college degree, caused severe damage to manufacturing communities throughout the country, and increased dependence on fragile global supply chains.

The Trump administration’s current approach is even worse than what came before. The administration has chaotically implemented historically high and broad-based tariffs rather than pursue opportunities for mutual benefit from cooperation. The reality is that it will take a range of domestic and international policy levers to make the global economy deliver broadly shared benefits to workers in the U.S. and abroad—not a short-sighted reliance on universal and historically high tariffs.

To counter this situation, policymakers should pursue an agenda that includes:

• Domestic policies that boost wage growth to make up for drags from global competition, such as aggressive targeting of full employment, substantial minimum wage increases, and protections for workers to freely associate and bargain collectively in unions;
• Macroeconomic policies to maintain a value of the U.S. dollar that is consistent with more-balanced trade;
• Incentives for countries to uphold labor rights and environmental standards;
• Industrial policies to support key sectors that build supply chain resilience; and
• International coordination of tax policies that prevent the offshoring of manufacturing and ensure multinational corporations pay their fair share.

“Trade policy has failed U.S. workers for decades, but the Trump administration’s approach is even more damaging. The Trump administration has promoted historically high and broad-based tariffs as a silver bullet for the negative effects of trade on workers and their families. But the truth is it will take a menu of policy reforms to solve the problems that globalization poses to U.S. workers,” said Josh Bivens, EPI chief economist.

“The Trump administration has put xenophobia and dominance displays at the center of trade policy. If this approach continues, it will lead to a poorer United States and a weaker global economy, not a renaissance of good manufacturing jobs,” said Adam S. Hersh, EPI senior economist.