Question

Will the trade policies of President Elect Trump lead to additional "gains from trade" or will these policies lead to a reduction in "gains from trade"? What policies does President Elect Trump propose that would impact foreign trade? How do those policies impact various social and economic groups within our country? What various social and economic groups are there in our country? The word "stakeholder" is often used in analyzing policy issues. The stakeholders include producers who export, producers who import, producers who have a domestic business, workers in those various producer industries, consumers, government legislators, government officials, taxpayers, bankers, investors, and savers. As you consider your answers to the questions above, think about various groups that have disparate interests.

Answer 1

The Trade policies of President Trump has been a hot topic of discussion and debate among the global community. There have been many aspersions made on the effects of the trade policies of President Trump. President Trump has had a very strict and decisive framework for the trade sector, in which he has been very vocal about the losses being incurred by the country over the years owing to trade policies which, according to the President, has benefited the foreign trading nation more than the United States. He has categorically stated a few examples such as the import duty imposed by various nations on the automobile goods and products exported by America, which have been severely high and has been a big factor contributing to the loss incurred by American companies. This duty has been imposed on many other sectors of export too. Similarly, many countries have been exporting services to America at a very high rate thereby earning huge amount of profits and pushing the economy in to slumber. Moreover, the exported goods, commodities and services from America to the various nations have also been taxed heavily, there causing the same result.

                                            From the few years that has seen severe trade regulations been imposed by the President, there have been initial reduction in the gains from trade. Trade war has been the new term coined to depict the current altercations that have been caused by these stringent trade and other economic policies. Many countries have strongly condemned this trade attitude from America. However, a section of the economists are of the view that all these steps will strengthen the cause of American trade benefit in the long run, as a number of deficit causing factors have been acted upon and in the initial stages, such revolt was expected.

                                    The various stake holders and the various social communities and economic firms have been directly impacted by these trade regulations. The producers of various goods and commodities who export their products to foreign nations have experienced severe decrease in the demand for their goods owing to high increase in the tax of the exported goods and thereby, their profits have largely fallen. Many importers have also been negatively impacted by these trade policies, as they are now facing concerns from the exporting nations owing to large scale increase in the import duty imposed on these products. The Government officials, legislators have been largely benefited by the reduction of internal tax mechanism by the Trump Government, however, the domestic businesses, workers in those business firms, investors etc. have had to bear the negative impact of the reduction in the initial trade business with foreign nations.

                                  This is however, being argued to be improving with the passage of time, and as forecasted by some of the renowned economists, the future of American trade is in positive direction and the long term effect should show positive results.