Letter from the US: Trump’s protectionism threatens oil and gas industry

A trade war may damage US economic growth, with commodity producers the ultimate losers if history is a guide

Donald Trump’s election has pleased everyone in the US oil and gas sector. The individuals and firms celebrating Trump’s promises to reduce regulation and increase domestic oil production should “have been careful what they wished for”, however, because the president-elect also plans to implement an aggressive worldwide trade war. This war will likely proceed even though liberal and conservative economists alike warn that such actions generally depress economic growth. A look at the history books and the post-First/Second World War and Great Depression trade battles illustrate how commodity producers also end up losers. If history repeats, Trump may be touting the return of $1/gal gasoline w