Radio Address to the
Nation on Free Trade and the Imposition of Duties on Japan
delivered 25 April
1987, Camp David, Maryland
[AUTHENTICITY CERTIFIED: Text
version below transcribed directly from audio]
My
fellow
Americans:
Prime Minister Nakasone of Japan will be visiting me here at the White House
next week. It's an important visit, because while I expect to take up our
relations with our good friend Japan, which overall remain excellent, recent
disagreements between our two countries on the issue of trade will also be high
on our agenda.
As perhaps you've heard, last week
I placed new duties on some Japanese products
in response to Japan's inability to enforce their trade agreement with us on
electronic devices called semiconductors. Now, imposing such tariffs or trade
barriers and restrictions of any kind are steps that I am loath to take. And in
a moment I'll mention the sound economic reasons for this: that over the long
run such trade barriers hurt every American worker and consumer.
But the
Japanese semiconductors were a special case. We had clear evidence that Japanese
companies were engaging in unfair trade practices that violated an agreement
between Japan and the United States. We expect our trading partners to live up
to their agreements. As I've often said: Our commitment to free trade is also a
commitment to fair trade.
But you know, in imposing these tariffs we were just trying to deal with a
particular problem, not begin a trade war. So, next week I'll be giving Prime
Minister Nakasone this same message: We want to continue to work cooperatively
on trade problems and want very much to lift these trade restrictions as soon as
evidence permits. We want to do this, because we feel both Japan and the United
States have an obligation to promote the prosperity and economic development
that only free trade can bring.
Now, that message of free trade is one
I conveyed to Canada's leaders a few
weeks ago, and it was warmly received there. Indeed, throughout the world
there's a growing realization that the way to prosperity for all nations is
rejecting protectionist legislation and promoting fair and free competition.
Now, there are sound historical reasons for this. For those of us who lived
through the Great Depression, the memory of the suffering it caused is deep and
searing. And today, many economic analysts and historians argue that high tariff
legislation passed back in that period called the
Smoot-Hawley tariff greatly
deepened the depression and prevented economic recovery.
You see, at first, when someone says, "Let's impose tariffs on foreign
imports," it looks like they're doing the patriotic thing by protecting
American products and jobs. And sometimes for a short while it works -- but only
for a short time. What eventually occurs is:
First, homegrown industries start
relying on government protection in the form of high tariffs. They stop
competing and stop making the innovative management and technological changes
they need to succeed in world markets.
And then, while all this is going on,
something even worse occurs. High tariffs inevitably lead to retaliation by
foreign countries and the triggering of fierce trade wars.
The result is more
and more tariffs, higher and higher trade barriers, and less and less
competition. So, soon, because of the prices made artificially high by tariffs
that subsidize inefficiency and poor management, people stop buying. Then the
worst happens: Markets shrink and collapse; businesses and industries shut down;
and millions of people lose their jobs.
The memory of all this occurring back in the [19]30s made me determined when I
came to Washington to spare the American people the protectionist legislation
that destroys prosperity. Now, it hasn't always been easy. There are those in
this Congress, just as there were back in the [19]30s, who want to go for the
quick political advantage, who risk America's prosperity for the sake of a
short-term appeal to some special interest group, who forget that more than 5
million American jobs are directly tied to the foreign export business and
additional millions are tied to imports.
Well, I've never forgotten those jobs.
And on trade issues, by and large, we've done well. In certain select cases,
like the Japanese semiconductors, we've taken steps to stop unfair practices
against American products. But we've still maintained our basic, long-term
commitment to free trade and economic growth.
So, with my meeting with Prime Minister Nakasone and the Venice economic summit
coming up, it's terribly important not to restrict a President's options in such
trade dealings with foreign governments. Unfortunately, some in the Congress are
trying to do exactly that. I'll keep you informed on this dangerous legislation,
because it's just another form of protectionism and I may need your help to stop
it. Remember, America's jobs and growth are at stake.
Until next week, thanks for listening, and God bless you.
Original Text Source: ganlibrary.gov
Original Audio and Video Source:
archives.gov
Audio Note: AR-XE = American Rhetoric Extreme Enhancement
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Page Created: 10/26/25
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