President Donald Trump has approved several new trade policies that could significantly impact the U.S. economy, as well as foreign economies and businesses of all sizes. He believes the U.S. has long tolerated unfair trade practices and that his administration must address them for the country’s benefit.
Impact on Foreign Countries
These new trade agreements will not only influence the U.S. economy but also reshape international trade relationships, particularly with Canada and Mexico.
“The dependency that Mexico and Canada have on the USA is drastically more than the USA has on Mexico and Canada… The USA has more power in the relationship and can demand more from Mexico and Canada because we rely on them far less than they rely on us,” said AVHS Economics and U.S. History teacher Bee Benson.
Will It Work?
President Trump has imposed a 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China. His administration hopes these measures will pressure these countries to curb illegal immigration and drug trafficking.
“I think that initially he is using the tariffs as a kind of threat to push through legislation or push through other countries doing what he wants them to do. But I don’t think it’s going to be a lasting foreign policy that’s going to be effective because at some point they’re going to try to make trade agreements with a different country. So we might see shifts in who their trade partners are, and that can really only hurt us,” said AVHS Economics and U.S. History teacher Xavier Milton.
Local Impact
Small businesses could also feel the effects of these trade policies. Kim Steelman, assistant manager at Studio Seven Arts, explained that importing art pieces from foreign countries may become more challenging.
“I think it might be harder to get some of the things that we need that actually profit us, because most of the things we have in here are on consignment, and the things that make the profit are the things we have to buy. One specific art piece comes from Indonesia and the other comes from China. My personal opinion is that the policies will not do as Trump hopes. I don’t believe that you can actually force anybody to do something and expect that that’s going to work. I think trade is important and it has to go both ways, and he just wants it his way,” said Steelman.
As trade policies continue to evolve, businesses and consumers alike will have to adapt to the economic shifts they bring. Whether these policies will achieve their intended goals remains uncertain, but their impact is already being felt across industries and international markets.