Here are the key takeaways from President Reagan's Radio Address to the Nation on Free and Fair Trade (August 31, 1985):
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Reagan rejected tariffs/quotas on foreign shoe imports, arguing protectionism causes more harm than good, even to those intended to benefit.
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Estimated hidden costs of shoe import quotas: American consumers would have paid nearly $3 billion extra. Trading partners could demand $2 billion in compensation or retaliate, risking American jobs and a potential trade war.
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Protectionism is self-defeating: Historical protection (1977–81) made U.S. footwear companies more vulnerable, not stronger, confirming Reagan's view that it should be called “destructionism.”
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Trade deficits vs. employment: Although the U.S. had a trade deficit in 1985, employment reached historic highs. Reagan cited 7.5 million new jobs created since 1980, showing open trade and a growing economy benefit workers.
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Risk of trade wars: Starting a trade war would hurt U.S. farmers and throw Americans out of work. Reagan warned against repeating “the most destructive trade bill in history,” the Smoot-Hawley Tariff Act of the 1930s, which worsened the Great Depression.
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Commitment to fair trade: Reagan pledged to oppose any legislation (tax, trade, or farm) that wasn’t in the nation’s long-term economic interest.
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Economic optimism: He highlighted tax cuts, expanding opportunity, and fighting poverty as evidence of U.S. strength, urging further tax reductions rather than returning to failed protectionist or higher-tax policies.
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Labor Day challenge: Reagan encouraged Americans to create 10 million new jobs in the next four years, emphasizing courage, hard work, pride, and faith as the foundation for national success.
The message overall promotes free trade, open markets, and economic optimism, warning strongly against protectionist measures and calling for continued support of American workers and industries through competition, not isolation.youtube
