I’ve been really fascinated by Reagan, Trump and Free Trade as so many of us have lately thanks to the advertisement featuring President Reagan speaking about his disdain for tariffs. That ad featured a 1987 speech — I actually prefer the Nov. 11, 1983 speech to the Japanese National Diet in Tokyo (scroll to the end for that video).

What’s really interesting is that, yes, Reagan spoke out against tariffs all his life. A line he repeated or at least the sentiment he shared with the Japanese that day stuck with me I used it in the preface to The Reagan Files 2025: The First Term.

Perhaps no area showcases the differences between Reagan and Trump greater than their positions on trade. President Trump’s call for protectionist trade measures in 2025 echoed exactly what Reagan fought against. Speaking to the Japanese Diet on November 11, 1983, the first American president to be given such an honor, the subject was so important to Reagan that he made free trade one of the main topics that day. “I am old enough to remember what eventually happened the last time countries protected their markets from competition,” Reagan said that day. “It was a nightmare called the Great Depression. And it was worldwide.”

But what sticks with me even more — and I think what the Trump administration is missing — is that President Reagan was not as free trade/anti-tariffs as his public remarks would suggest. Again, I’m going to refer back to an excerpt from my book on Reagan’s meetings in 1981 with the Japanese in which he essentially strong-armed them to “voluntarily restrain” car exports to the United States.

President Reagan must have been feeling almost 100 percent by May 7 because his daily diary, normally just two or three pages, was over four pages for that day. He started the day as he usually did with a wake-up call at 8 AM and then breakfast with his wife. Instead of his usual 9 AM meeting with Baker, Meese and Deaver, he first spent a few minutes alone with Deaver before an Oval Office photo shoot with Representatives Gramm and Latta, responsible for sponsoring his economic program the House would overwhelmingly adopt later that day. “The budget bill passed 253 to 176,” he wrote in his diary that night. “All Republicans stayed together and 63 Demos voted with us. We never anticipated such a landslide. …It’s been a longtime since Repubs have had a victory like this.”With the pre-celebration photo-shoot done, Reagan was left with just about 45 minutes to get through his regular morning briefings before he had to greet the Prime Minister of Japan, Zenko Suzuki, at 10, who would be honored with a full military review of the troops on the South Grounds. The leaders then exchanged remarks in front of the press for almost 30 minutes before Reagan led Suzuki to the Oval Office for their first private meeting.Despite the assassination attempt, Reagan and his team had been well-prepared for this meeting. First, on March 20, Reagan spent 30 minutes in the Oval Office with former Japanese Prime Minister Fukuda reviewing both the international situation and U.S.-Japanese relations. “The United States plays the central role in seeking peace, the former Prime Minister told Reagan. “The West must rally around America…I look forward to what a strong Reagan Administration can do to build consensus in the West.” “The United States is determined to do just this,” Reagan immediately responded. “We will increase our efforts to produce a stronger and more durable Western alliance…We are moving to increase our naval strength – we want to work closely with our allies in formulating our plans. We also must restore our economic strength at home.” “I earnestly hope that the United States plans to restore the American economy will be successful,” Fukuda responded. The plans are very comprehensive. I can compare them with President Roosevelt’s New Deal.”The President shifted the conversation to the struggling American auto industry. “I am a strong believer in free trade, but the U.S. auto industry is in a desperate plight. Within Congress there is growing support for protectionist legislation and setting import quotas. It will be difficult for me if such legislation were to be passed by Congress. Prime Minister Suzuki will be visiting Washington soon. Do you have any ideas as to how such a situation could be headed off?”“It is clear that protectionism is the enemy of peace,” Fukuda responded. “I believe there are voluntary steps that could be taken to keep the U.S. and Japan from being blocked in by protectionism…the Japanese response will be taken in full consideration of the saying that ‘a friend in need is a friend indeed.’”The President could not let the former prime minister leave without making it clear that if the American auto industry collapses, “its collapse could bring on a depression like that of 1931.”The importance of Reagan’s message to Fukuda was echoed four days later, on March 24, when Japanese Foreign Minister Masayoshi Ito spent 30 minutes in the Oval Office. Ito, immediately, let Reagan and his team know the message to Fukuda came across loud and clear. “The U.S. relationship is the basis of Japanese foreign policy,” Ito directly told Reagan. As a gesture of goodwill Ito informed Reagan that Japan had already committed $10 million “as part of a World Bank effort to help Jamaica,” something Reagan had hoped for as part of American efforts to support the newly elected Seaga government in Jamaica. Reagan expressed his appreciation for the support for Jamaica and then, as he did a few days earlier, quickly turned the conversation to the automobile industry in the hopes that the issue could be resolved before Prime Minister Suzuki’s visit in May.

REAGAN: I held two meetings earlier today with members of the Senate, where there is legislation being developed that will impose quotas on automobile imports from Japan. I am not in favor of protectionism – I want to avoid having to deal with such legislation. I hope a solution to the automobile import question can be reached before Prime Minister Suzuki’s visit. I am trying to keep the Senators from formally proposing restrictive legislation. Such legislation will be very hard to veto from a political point of view, and in all likelihood a veto would not be sustained. I am looking with interest to what voluntary measures the Japanese can adopt to limit their imports. I hope that voluntary measures can be taken to solve the automobile import question, rather than having to face legislation from Congress that would impinge on free trade principles. Mr. Ito, what are your views on this question? What might be the answer to the problem?

ITO: I appreciate your frankness in speaking of the automobile issue. We will draw heavily on the President’s thoughts as we try to work a way out of the problem. … I admit that the automobile issue causes controversy in the Japanese Diet. Japan abides by the free trade principle, and we have made high-quality, fuel-efficient cars and we should not be penalized for this. Nevertheless, Japan recognizes the difficult situation in which the U.S. automobile industry finds itself. Japan also recognizes the views of Congress, and the importance of upholding free trade. All of these issues have been covered fully in my meetings with Secretary Haig. Japan will consider doing something voluntary to help solve the problem. The specifics of import levels, and methods would need to be worked out in Japan, so I will not be able to respond to the President’s question. I suggested to Secretary Haig that an American delegation go to Tokyo to discuss specific measures to be taken.

REAGAN: I am pleased to accept this arrangement. The U.S. is doing all it can to help its own industry, because the failure of the automobile industry can by itself cause a depression. I want to reiterate that voluntary and temporary measures by Japan will be the best way to solve the problem.

With both sides in agreement that further meetings should take place in Tokyo, the two allies had about six weeks to finalize an agreement before Prime Minister Suzuki arrived at the white house. The assassination attempt almost derailed the talks, but with Reagan recovering his team went to work to figure out how best to encourage a voluntary restraint on exports by Japan without being seen as interfering in the free market.With no agreement reached and the impending visit of Prime Minister Suzuki now just days away, Reagan sent United States Trade Representative Bill Brock to Japan to get the outstanding issues resolved. Brock, officially in Japan to advise the Japanese government on how Congress would react to a specific voluntary restraint number so as not to be seen as interfering in the free market, helped seal the deal when he informed the Japanese that the U.S. Congress would be receptive to a cap of 1.68 million cars per year, about 140,000 cars less than Japan sold in the United States the previous year. Japan announced the voluntary restraint on May 1, setting the stage for a successful meeting between the two allied leaders.

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Notes.....

For those interested here’s the YouTube video of Reagan’s Nov. 11, 1983 speech in Japan thanks to the Reagan Library You Tube Channel. About minute 9:25 he mentions the importance of the free market. Below my summary of that day….

The next day Ronald Reagan became the first president of the United States to address the Japanese Diet. Standing under both American and Japanese flags, he talked for 30 minutes on the Japanese-American friendship receiving his first huge round of applause when he used his best Japanese to say: Nichi-bei no yuho wa eien desu. Translated to: “Japanese-American friendship is forever.”Reagan received more huge applause after he called his visit “an historic opportunity” for the United States and Japan to “become a powerful partnership for good…throughout the world.” He then immediately talked about the critical trade balance between the United States and Japan. “Our prosperity requires a sound international financial system and free and open trading markets,” he declared. A minute later he received another huge round of applause when he noted: “[W]e will not succeed in any of these endeavors unless Japan and America work in harmony.”But the biggest applause of the night would be saved for his pronouncement that “A nuclear war can never be won and must never be fought…I know I speak for people everywhere when I say our dream is to see the day when nuclear weapons will be banished from the face of the earth.”Reagan then blamed the Soviet’s for the stalemate in the arms reductions talks. “[T]hey’re blocking the dramatic reductions the world wants…we have offered new initiatives, provided for substantial reductions to equal levels…but…we still wait for the first positive response.”He then returned to the subject of free trade. “Partnership must be a two-way street grounded in mutual trust. …Our combined economies account for almost 35 percent of the world’s entire economic output. We are the world’s two largest overseas trading partners. …At the Williamsburg Summit last May, the leaders of our industrial democracies pledged to cooperate in rolling back protectionism. My personal commitment to that goal is based on economic principles, old-fashioned common sense, and experience. I am old enough to remember what eventually happened the last time countries protected their markets from competition: It was a nightmare called the Great Depression. And it was worldwide. World trade fell at that time 60 percent. And everyone- workers, farmers, and manufacturers were hurt. Let us have the wisdom to never repeat that policy.”As it turned out free trade would be the main theme of his speech that day. To illustrate his remarks he talked of the group of American and Japanese climbers that had recently scaled Mt. Everest – with the Japanese group going up from Nepal while the Americans left from Tibet. “The conditions were so difficult and dangerous that before it ended two Japanese climbers tragically lost their lives,” he recounted. “But before that tragedy, those brave climbers all met and shook hands just under the summit. And then, together, they climbed to the top to share that magnificent moment of triumph.” “Together,” Reagan concluded, “there is nothing that Japan and America cannot do.”“Very well received,” Reagan proudly confided to his diary that night. “PM said no other head of state had ever received such applause.” The Reagan’s spent the rest of the day visiting with school children, then a traditional lunch at the Nakasone’s private residence – “we sat on the floor and had a real Japanese lunch” he told his diary – and then the official goodbye ceremony with the Emperor. The next morning the Reagan’s flew to South Korea.