There are widespread worries that U.S. President Donald Trump's protectionism will erode the long-term benefits of global trade. There are also hopes, mostly among Trump's supporters — including many U.S. companies — that tough policies can prevent China from becoming America's technological equal. But worries about the long-term impact of reduced global trade may be exaggerated and the hope of keeping China down has no chance of being fulfilled.
Trade occurs for three reasons. For starters, countries have different inherent resources: some have oil, others copper; some grow bananas, others wheat. If that trade were stopped, global prosperity would suffer. But trade in commodities and agricultural goods actually counts for a minor share of total trade, and will undoubtedly continue to do so.
Trade also reflects differences in labor costs. Low-cost countries produce labor-intensive manufactured goods, using machinery imported from high-labor-cost countries.