I'm a little concerned as to how Trump's approach towards free trade (in particular with China) would affect the world economy.
If he puts large tariffs on Chinese-made goods, it might not just be China that feels the repercussions.
Then again, it might revitalise US manufacturing. Who knows, really.
I'd like to see what Trumps white-trash voters think after his tariffs quadruple prices at the local walmart. They want more "made in USA?" I saw some jeans made in US. They cost $200+..
Yeah well I've seen (and purchased) jeans made in Australia (RM Williams, which I'm sure include a fair bit of margin) that are around that. I'm sure if bulk 'mass market' jeans were produced in the US in either low-wage states or heavily automated plants, that they'd be cheaper (maybe not as cheap as jeans from Bangladesh, but still). Although, would many Americans be keen on working in a clothing factory on minimum wage?
If tariffs are imposed on Chinese-made goods in the USA, then the Chinese economy would suffer, and any countries that export to China would also suffer. Would any potential increase in US manufacturing offset that decline in demand? I guess raw materials would be needed for the wall that Trump wants to build.
Also, the USA is home to a lot of multinationals. How would they be impacted by more protectionist policies in the USA?
Would significant tax cuts (and an increase in military spending) be appropriate when there's a huge national debt and a trillion dollar deficit? Could it result in a further decline in the US credit rating?