Trump and Trade

Trade is something we've all heard of. It's how we picture thanksgiving, it's what we do with Pokemon cards or candy. But little do people know of the big impact trading has on our economy. It grows, provides jobs and creates foreign policy. It's the basis of how everything starts. Now Donald Trump has some people scared because of his trading schemes. Will it help or hurt America?

Donald Trump and his trading plan has been the headline in the news for a couple of days. The reason being of the uncommonness of it. Starting with the withdrawal of the TransPacific Partnership. Being a controversy since the beginning it seems to spark people's interest even more. It's a trade deal with 11 other countries, including: Australia, Vietnam, Canada, and more. That planned to have free trade starting at Chile and ending with Japan. While if we withdrawal from this partnership its estimated we will gain about 25 million jobs. When Trump was talking about his withdrawal he was quoted as saying, "we must crack down on those nations that violate trade agreements and harm American workers in the process." 

North America Free Trade Agreement (NAFTA) is another trade agreement set up between Canada, United States, and Mexico. On whitehouse.gov Trump talks about his plan to rewrite NAFTA. "President Trump is committed to renegotiating NAFTA. If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States' intent to withdraw from NAFTA." While this trade has been going on since '94, the trade deals seem to only benefit Canada. The more we improve the more Canada gains. Which as we learned in class, is just how trade works. 

As I'm sure we all know, Trump is not the biggest fan of China and the Chinese government. The United States has had a trading system with China for years and has significantly increased since the Obama administration. So with the withdrawal of TransPacific and NAFTA what will happen with China? Well Trump has already declared he wants to label China as a "currency manipulator" in the commerce. And according to a paper written by David Autor, Trump may be right. Trade with China has cause more problems than it has solved. As it is believed China stole American property and violated many other trade laws. And if we stop this trade with China it's estimated to create some 2 million jobs. However, this will take a serious economic toll on China, being trade with us makes up around 1/5 of their economy. Making this critical for China to stay afloat.

I believe that we should stay in NAFTA. Trading systems benefit everyone but it's not going to be balanced. However, if the estimations are correct the withdrawal from TransPacific Partnership may not be all that bad. For China's sake, since we are such a big part of their economy I don't think trade will stop completely. Trump may rewrite some deals to where it's in our favour.