What is the 'users guide to re-structuring the global trading system' and why is it a big deal?

How global trade could change with the adoption of a new US policy.

Stephen Miran’s A User’s Guide to Re-Structuring the Global Trading System presents a pathway for major shifts that could reshape how global trade works. This guide is timely and important, not only for the United States but for all nations involved in the international economy. It outlines a variety of tools and ideas that the United States and other governments might use to change current trade and currency systems.

The guide does not argue for or against these tools but instead helps readers understand how they work, what trade-offs they bring, and how they could affect global economic systems. At a time when leaders are questioning long-held economic policies, this guide offers valuable insights into what the next era of global trade could look like.

The guide is a big deal because it is likely be a key reference within the 2025 United States Trump administration and will help shape economic, monetary, trade, and national security policy options. This outcomes of this policy will also clearly be significant for all trading nations and hence it will be important to understand it as part of broader efforts to navigate coming years.

The long-standing strength of the dollar

A major point in the guide is that the U.S. dollar has remained too strong for too long. This overvaluation makes American goods more expensive in other countries, which leads to lower exports and larger trade deficits. One reason for this is the high global demand for U.S. dollars as a safe and trusted currency. As the world economy grows, this demand increases, placing a greater burden on the U.S. to supply dollars by importing more than it exports. This situation puts pressure on American workers and manufacturers, especially in sectors that rely on selling products abroad. According to Miran, the overvalued dollar is one of the main reasons behind today’s global trade imbalances.

Trade reform as a long-term political goal

The guide connects this issue to a longer-term political view, particularly one supported by President Trump. For decades, he expressed concern that international trade rules placed the United States at a disadvantage. During his first presidency, several actions were taken to change trade relations, such as applying tariffs and questioning global trade agreements. While the guide does not promote these actions, it explains them as part of a broader effort to rebalance global trade in favour of U.S. industries. Miran’s analysis helps explain the logic behind this approach, offering readers a clearer picture of how domestic industries and international rules interact.

Understanding tariffs and their effects

Tariffs are a central focus of the guide. These are taxes placed on goods that are brought into a country. Governments may use them to collect revenue or protect local industries by making foreign goods more expensive. A common concern is that tariffs raise prices for consumers or reduce overall trade. However, Miran argues that these side effects may be smaller if currency values adjust at the same time. If the dollar weakens, it can help offset the price increase caused by tariffs. In this case, the country exporting the goods may bear more of the cost, while the country applying the tariff gains revenue. This dynamic can help make the system fairer and also reduce the financial burden of maintaining global leadership roles.

National security as part of trade policy

Miran also discusses how tariffs might support national security. In certain industries—like defence, energy, or high technology—governments may want to be less dependent on other countries. By applying tariffs to selected products, a country can help ensure it has strong domestic capabilities in key sectors. This approach must be carefully designed to avoid breaking global trade rules or starting trade conflicts. The guide offers examples of how targeted tariffs could support both economic and security goals without harming broader trade relationships. This shows that trade tools can serve more than just financial purposes—they can also help strengthen national resilience.

Finding the right tariff level

Choosing how much to tax imports is a complex task. If the tariff is too low, it won’t have much effect. If it’s too high, it might lead to retaliation from other countries or cause problems for local businesses. Miran explores how tariffs could be included in the wider tax system. In some cases, they might replace other taxes, helping to create a more balanced way of raising government money. Still, any large shift in taxes or trade policy must be handled with care. It takes strong planning to avoid unwanted effects and to make sure the changes work in the long run.

Dealing with currency undervaluation

Another key issue in the guide is the role of currency values in trade. Some countries may keep their currencies low on purpose to make their exports cheaper. This puts pressure on trading partners whose products then seem more expensive. While many believe that such currency imbalances can only be fixed through global agreements, Miran argues that countries can take action on their own. Possible tools include taxing foreign capital, setting controls on money flows, or directly buying and selling currency in markets. These tools come with risks, including effects on investment and global confidence, but they may also help correct unfair advantages in trade.

Handling the timing and side effects of change

One of the strengths of the guide is its attention to timing. Large policy changes often have side effects, especially in complex systems like trade and finance. Miran suggests that any big moves should be introduced step by step. This makes it easier to see how the market responds and adjust plans before problems grow too large. Whether it’s tariffs, currency tools, or tax changes, governments need to be flexible and ready to respond to unexpected outcomes. Good timing and clear communication are important to avoid market shocks or policy failures.

Reactions from financial markets

Policies that affect trade and currency can also have big impacts on financial markets. Investors might change their behaviour if they think a currency will weaken or if companies will face new taxes. For example, changes in the value of the dollar can affect the price of goods and the value of stocks and bonds. Tariffs could raise profits for some companies while reducing them for others. Miran outlines several ways that financial markets might respond to different trade actions. These responses are important to consider because they affect the whole economy and can change how successful a new policy turns out to be.

Conclusion

Stephen Miran’s A User’s Guide to Re-Structuring the Global Trading System offers a careful and detailed look at how governments, including the United States Government might change trade and currency policies. It outlines the tools available—such as tariffs and currency measures—and explains their possible impacts on both trade and financial markets. The guide does not argue for or against any single policy but instead shows what options exist and what challenges might come with them.

For policymakers and experts around the world, this work is a critical reference. It gives a clear picture of how global trade might shift in the coming years and why savvy strategic planning is needed. As countries review their roles in the world economy, this guide provides useful ideas for building a system that is fairer, more stable, and better suited to today’s challenges.

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ReferenceMiran, S. (2023). A user’s guide to re-structuring the global trading system. American Compass. https://americancompass.org/essays/a-users-guide-to-re-structuring-the-global-trading-system/