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fazer1k · 56-60, M
They do! Trump will cause US goods prices to rise because costs will be higher and businesses will pass the extra costs on to consumers. He might create more jobs if the demand for home materials increases but that assumes demand for US goods won't decrease as a result of increased prices. It's possible he will reduce the amount of jobs if he gets it wrong. I believe the US dollar is reasonably strong at the moment which is good for importers but will make American goods pricey to the rest of the world.
As for the UK, we have the same issue, potentially, due to Brexit. Apparently prices here have already been impacted and we haven't even left the EU yet.
As for the UK, we have the same issue, potentially, due to Brexit. Apparently prices here have already been impacted and we haven't even left the EU yet.
fazer1k · 56-60, M
@HoraceGreenley American goods and services are perceived as expensive elsewhere. I'm not sure making them more expensive can help.
If America, as a result of tariffs imposed, starts manufacturing more to compensate then you wouldn't need to import so much - I believe that is one of Trump's stated objectives. Effectively you would be closing America off somewhat by supplying your own needs but American labour is relatively expensive and prices of your goods will have to remain high for quite a long time, I suspect. You may reduce your trade deficit that way but you also risk your average standard of living falling as a result if access to cheaper goods is effectively denied via tariffs imposed by America.
If America, as a result of tariffs imposed, starts manufacturing more to compensate then you wouldn't need to import so much - I believe that is one of Trump's stated objectives. Effectively you would be closing America off somewhat by supplying your own needs but American labour is relatively expensive and prices of your goods will have to remain high for quite a long time, I suspect. You may reduce your trade deficit that way but you also risk your average standard of living falling as a result if access to cheaper goods is effectively denied via tariffs imposed by America.