Question

Do you think the President’s trade policies will be good for the U.S.? Why? Why not?

Answer 1

President Trump has been following protectionist trade policies and he is in support of raising tariffs and imposing trade barriers with countries like China. In addition, he is in favor of dismantling of trade agreements like NAFTA. I think protectionist trade policies would be harmful to the US economy in the long-run. Free-trade is beneficial for the USA in a number of ways. Firstly, it helps US consumers consume a large variety of goods at a lower price and a higher quantity. Secondly, It helps US firms achieve more cost advantage by enabling them to import materials at a lower cost. Thirdly, it helps US exporters gain access to a larger world market, which increases their revenue and creates jobs in the USA. Therefore, I think preventing free trade and increasing trade barriers would be counterproductive for the USA.