The longer Donald Trump remains the President of the United States, the more damage will be done to the American economy and the American people. At this point in his Presidency, he has ordered a retreat from important trade agreements, such as the Trans-Pacific Partnership (TPP) and the North American Free Trade Agreement (NAFTA). In the eyes of other world leaders, this signifies the start of an era of protectionism and the end of U.S. economic dominance.
Pro·tec·tion·ism: the theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.
In light of the trade actions taken by officials in the United States, many nations have chosen to move forward on trade negotiations without the participation of the U.S.A. In Canada for example, the country’s leaders have resumed negotiations with Asian countries, and well as southern trade partners in Mexico. This means that the U.S. has already begun to lose out on the economic benefits of trading freely with close neighbors and long-time partners abroad.
The United States must also fear the implementation of retaliatory tariffs on the country’s key cash crops, such as corn. At the moment, the U.S. sends an enormous amount of the corn it produced to Mexico. If the Trump administration chooses to discard the established NAFTA agreement, Mexico could place a hefty tariff of America’s corn and hurt U.S. farmers.
In a time when technology and innovation bring the world closer together, President Trump and U.S. officials appear to be trying to distance the country from the international community. While other world leaders move forward together with economic growth and plans for prosperity, the United States’ officials and citizens will be expected to keep the wheels of their domestic economy turning, on their own.