Economics: The Impact of Trump's Trade Policies on the US Economy

This report analyzes the economic impact of President Trump's trade policies, focusing on the "America First" approach and its consequences. The report examines the shift from multilateral to bilateral trade, and the effects of these policies on the US economy, including the trade deficit, and impact on the GDP. It discusses how the policies affected farmers, manufacturers, and consumers. The report also highlights the impact of tariffs on various sectors, including machinery and metals, along with the impact on the stock market. The conclusion is that the policies led to increased prices, decreased employment, and reduced production, along with the potential risks to businesses. The report references academic sources to support its findings.

Running Head: Economics 1
Economics
Student Name
2/2/2020

Running Head: Economics 2
President’s Trump Trade Policies
The Trade Policies was a part of “America First” economic policy. It has motive to focus on
nationalism, unilateralism, protectionism and isolationism. The trade policies introduced as to
reduce the United States trade deficit by transferring American policy from multilateral trade to
bilateral trade. The impact of trade policy of President Trump was negative and it harmed the
American economy at some points. The reasons are as follows:
The GPD of the America from past years was lower due to trade. The country’s ratio of
importing was higher than exporting ratio as purchasing from other countries was more. The rise
in imports affects the production and economy because the currency of America was going to
other country (Noland, 262).
It created struggles for farmers, manufacturers to do agriculture and the raised prices also affect
the customers. The economy of the country instead of rising, decreased. Also, there was a
situation of stock market instability. The increased prices of capital and consumer goods
diminished the spending power of consumers.
The tariff has increased the job ratio in machinery and metals sector but the other sectors are
growing on their normal speed. There is no benefit of other sectors. Therefore there was no
growth in the economy.
With the introduction of tariff the prices raised and reduction in quantities of goods and services
available. Therefore, it reflected in low income, decreased employment and lower production.
Also, the future risk to do business increases (Fidler, 1).

Running Head: Economics 3
References
Fidler, David P (2017). "President Trump, trade policy, and American grand strategy: from
common advantage to collective carnage." Asian J. WTO & Int'l Health L & Pol'y 12 1.
Noland, Marcus (2018). "US trade policy in the Trump administration." Asian Economic Policy
Review 13.2, 262-278.