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 restrict 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.
The first tariffs were imposed on washing machines and solar panels, soon after that the Trump administration put tariffs on aluminum. A 25% tariff was put on all imported steel and a 10% tariff on aluminum imported from Mexico, European Union and Canada.
These are some of the top trading partners, and they were not happy with these tariffs.
The European Union’s answer to Trumps new tariffs, were to impose tariffs on US goods such as bourbon and Harley Davidson motorcycles.
Due to does tariffs some of the Harley Davidson production will be moving out of the U.S to avoid them. Tariffs effect a lot of people and this includes the American consumers and businesses.
Even tough tariffs are supposed to boost and protect American companies, they sometime force consumers and businesses to pay more for imported goods.
The companies effected by these tariffs can choose to accept the extra fee, and respond by increasing their prices, which then effects the consumers, or they can choose to move their production to another country – just like the Harley Davidson production.