<P> United States trade policy has varied widely through various American historical and industrial periods . As a major developed nation, the U.S. has relied heavily on the import of raw materials and the export of finished goods . Because of the significance for American economy and industry, much weight has been placed on trade policy by elected officials and business leaders . </P> <P> The 1920s marked a decade of economic growth in the United States following a Classical supply side policy . U.S. President Warren Harding signed the Emergency Tariff of 1921 and the Fordney--McCumber Tariff of 1922 . Harding's policies reduced taxes and protected U.S. business and agriculture . Following the Great Depression and World War II, the United Nations Monetary and Financial Conference brought the Bretton Woods currency agreement followed by the economy of the 1950s and 1960s . In 1971, President Richard Nixon ended U.S. ties to Bretton Woods, leaving the U.S. with a floating fiat currency . The stagflation of the 1970s saw a U.S. economy characterized by slower GDP growth . In 1988, the United States ranked first in the world in the Economist Intelligence Unit "quality of life index" and third in the Economic Freedom of the World Index . </P> <P> Over the long run, nations with trade surpluses tend also to have a savings surplus . The U.S. generally has developed lower savings rates than its trading partners, which have tended to have trade surpluses . Germany, France, Japan, and Canada have maintained higher savings rates than the U.S. over the long run . </P> <P> Some economists believe that GDP and employment can be dragged down by an over-large deficit over the long run . Others believe that trade deficits are good for the economy . The opportunity cost of a forgone tax base may outweigh perceived gains, especially where artificial currency pegs and manipulations are present to distort trade . </P>

An increase in u.s. trade barriers would result in a(n)