In this essay, I will be discussing the consequences of Donald Trump’s ‘’America First’’ policy for American businesses, consumers, workers and foreign relations.
Since Trump has been elected as president of the United States one of his priorities has been to strengthen the American economy. The Trump administration believes that the reason that the employment rate has declined the recent years, is due to the free trade – Hence the complaining about the Liberal World Order.
The thing Trump is doing is called protectionism, that is when the government restricts international trades, to help improve the activity in a domestic economy.
One of the ways he wants to do that is by imposing tariffs on imported things from other countries. Tariffs are taxes put on imported products by the government to protect domestic companies. Of course, there are side effects of imposing tariffs, such as higher consumer prices.
Trump's trade war with China has resulted in many people being left jobless, and fewer jobs being created. Even though the unemployment rate is very low right now, it would have been lower if it was not for the trade war.
Already at the beginning of 2018 Trump started by putting tariffs on half of the imports from China. In 2018 the average tariff was about 3,1%, but then Trump got tariff crazy and it went up to 21,2% according to Peterson Institute for International Economics.
On September 1st in 2019 purposed a new tariff that would hit the finished consumer goods imported from China, this includes shoes, food and clothing. Another tariff went through on December 15th which hit many more consumer goods, like smartphones and electronics.