Trump Is Ready to Hurt US Businesses and Consumers
Date: 17 August 2016 Share on Twitter Share on Facebook
Donald Trump’s campaign to become president of the United States has been nothing if not controversial.
Headlines relating to Trump’s campaign have tended to focus on his off-the-cuff remarks about issues relating to immigration reform or attacks on his various political opponents.
But there are of course plenty of people throughout the country and beyond who are concerned primarily about what a potential Trump presidency would mean for businesses and for the US economy as a whole.
Opinion is divided but there are some signs that the self-styled business mogul could actually end up doing more harm than good to American businesses.
One of the more stark reports on the potential impacts of a Trump presidency to have yet been published came from a subsidiary of the credit ratings agency Moody’s, which suggests that his policies could lead to a prolonged economic recession for the country.
Furthermore, the Moody’s Analytics report predicts that Trump’s proposals on tax, trade and public spending will lead to heavy job losses across the US.
Indeed, the report does not pull any punches and projects that if Trump’s stated economic plans are enacted during his first term in office then they will lead to as many as 3.5 million American jobs being lost.
The area of economic policy about which Mr Trump has been most vocal in recent months is that of tariffs.
Specifically, Trump has said that he would, if elected as president, seek to raise tariffs in relation to goods heading to America from countries including Mexico and China.
It is unclear whether he would intend simply to threaten to raise tariffs as means of renegotiating trade terms with other countries or whether those measures would in fact be implemented.
But Moody’s Analytics’ experts have made clear their view on the subject already which is that any such move would be very bad for businesses currently based in the US.
Primarily, tariff hikes would impact American businesses that rely on imports from other parts of the world.
However, the extra costs incurred in these circumstances is also expected to have an impact on consumers who would subsequently find the prices they pay for various goods and services increasing as well.
Perhaps the most controversial area of policy on which Mr Trump has made repeated pronouncements is immigration.
The presidential hopeful has made clear his intention to restrict immigration from neighboring Mexico by a variety of means which could soon be at his disposal.
From the perspective of employers and businesses as a whole, a halt in immigration from Mexico and from other countries in the Americas could result in serious labor shortages and in lots of jobs going unfilled in certain industries, most notably perhaps in the context of agribusiness operations.
Air of uncertainty
While Trump does enjoy the support of some big businesses and great swathes of the US population, there are many who feel that his election as president could lead to a good deal of uncertainty within the American economy.
A survey published by the Financial Times in May 2016 found that lobby groups representing roughly 100,000 US companies would rather see Hilary Clinton elected as president ahead of Trump by a ratio of two to one.
However, around a quarter of respondents said that they had yet to make up their mind about who might be best placed to lead the country in the coming years.