In January 2017, Donald Trump won the election becoming the 45th U.S. president. The day Donald Trump took office, he declared a change in America’s direction.
Since then, he has shaken one international structure after the other. Trump withdrew from TPP, threatened to end NAFTA and slapped import tariffs on US allies.
The change President Trump declared back in January 2017 is his so-called “America First” policy.
In President Trump’s reign he has imposed a lot of tariffs on imports, which have affected the working-class in America. President Trump’s tariffs have led to a trade war in which the U.S. and China have placed tit-for-tat tariffs on each other’s products.
The erosion of American manufacturing became a pivotal point during the 2016 election, and for a very good reason.
“Total employment in manufacturing has fallen by 25 precent since 2001, putting about 4.5 million workers out of job.” Trump and his administration’s solution were tariffs.
The Trump administration’s purpose of putting tariffs on imports is to help domestic companies.
Prices on foreign goods rises, as taxes go up. This means higher prices drive down consumption of foreign goods while bolstering demand for domestic equivalents.