Of Free Trade

           This is a quote from Adam Smith's The Wealth of Nations book four Of Systems of Political Economy Chapter One Of The Principal Of The Commercial Or Mercantilist System, "Consumable commodities, it is said, are soon destroyed; whereareas gold and silver are of a more durable nature, and, where it not for this continual exporation, might be accumulated for ages together, to the incredible augmentation of the real wealth of a country.  Nothing, therefore, it is pretended, can be more disadvantageous to any country, than the trade which consists in the exchange of such lasting for such perishable commodities.  We do not, however, reckon that trade disadvantages which consists in the exchange of the hard-ware of England for all the wines of France; and yet hard-ware is a very durable commodity this continual exporation, might too be accumulated for for ages together, to the incredible augmentation of pots and pans of the country. " 
           For the last five decades the United States and other western countries have been importing oil from Middle Eastern and Latin American countries using the U.S dollar as the global reserve currency.  America has been running massive trade deficits in which the U.S imports goods from China and oil while sending the commodity of the U.S dollar to the exporting countries.  Trade deficits can result from an influx of capital from forieng countries.  America's trade deficit is the result of importing massive amounts of oil and consumer products.  China has manipulated its currency by brining down the value of the yen against the U.S dollar in order to make Chinese goods cheaper than U.S goods.  In response Trump has implemented tarrifs against almost all Chinese exports to the United States. 
           Also,  developing countries such as Mexico have seen automobile and steel production move to those countries as a result of lower production costs.  These lower costs arise from a lack of environmental and labor regulations.  Wages tend to be substantialy lower in those countries.  Trump has implemented tarrifs on the imports of automobiles and steel.  These tariffs will likely reduce the trade deficit, and decrease the incentive for factories to outsource production to other countries.  National security is also playing a role in the implementation of these tarriffs.  Production of steel and other essential parts and materials for military equipment is safe to make in the country utilizes that equipment. This means that there is reshoring of capital from foreign countries to the United States beyond just defense contractors.  It started on the east and west coast and it will eventually move to the heartland.  This will also involve bringning in human capital especially from Asia.  Also, there will have to more investment in human capital at home.