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to think that if a lot of companies are going to be asked to either manufacture in the USA or they will face high taxes if they want to sell in the USA - that will have an effect on the USA?

(5 Posts)
amispartacus Sun 15-Jan-17 18:01:35

Because there will be retaliatory taxes on US companies wanting to sell abroad (which will affect companies that export)

The price of goods in the USA will increase as US goods sold in the USA will be more expensive than imports from countries with cheaper manufacturing costs.

Which will hit inflation.

My knowledge of economics is limited but it seems Trump is an isolationist.

Is that a good thing for an economy?

lljkk Sun 15-Jan-17 18:12:49

Trump is clueless about supply chains (tbf, most people are).
The steel ore gets mined in Australia.
Ore shipped to India to make it into bars.
Shipped to Taiwan to be shaped into car doors & panels.

meanwhile the door furniture (plastic and handles & so on) are made in China... or Bangladesh... or Uganda) from petrol-chem materials that came from Nigeria... or Saudi or Oman.

Then the panels are shipped to Mexico where the electronics get added (the supply chain for the electronics tripped from China to Europe first).

We won't even talk about the supply chain that fed the engine construction.

Everyone in the chain is highly skilled & has honed their product to be the cheapest at the quality spec.

Finally the panels & engine parts (& interior furnishings...) get shipped to Detroit where the whole lot is finally assembled and gets a "Made in the USA stamp."

Little will change.

amispartacus Sun 15-Jan-17 18:14:38

Little will change

But he's promised jobs and prosperity.

lljkk Sun 15-Jan-17 18:21:15

I don't think Trump's fans care if he delivers on anything he seemed to promise. They like his style. They don't care about his words.

They really just want him to deliver on giving the impressive of having given the entire Washington establishment the middle finger.

DJBaggySmalls Sun 15-Jan-17 18:24:53

The more that happens, the more I'm convinced thatTrump is a shill, and that everything that has happened in world news in the last few years is organised with an end in view.

I just lost all respect for Obama;;

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