Forbes Tr Vs free trade
Created Wednesday 20 November 2024
Trade Policy And Deglobalization
Trump shares Biden’s priorities to bring manufacturing onshore and to stymie imports especially from China. These policies bolster domestic supply chains but also add significant costs. Cost hikes would be exacerbated, and existing supply chains could be significantly disrupted, by broader economy-wide protectionist tariffs or other trade barriers. Tariffs could slow domestic investment and contribute to inflation. Trade policy also impacts fiscal policy, discussed below. Trade wars combined with geopolitical disengagement could lead to deglobalization that hurts the economy even if domestic manufacturing grows.
Deglobalization is an energy issue, not just a trade issue. Energy investments from Indiana to India and Texas to Thailand depend on liberal policies for the movement of more than equipment and natural resources. Cross-border capital flows, technology transfer (and respect for intellectual property ownership rights), and migration of skilled labor underpin energy sector investment across the United States as they do in other developed markets and especially in emerging markets. Nationalist or protectionist policies that jeopardize the (relatively) free movement of capital, goods and services impede investment and raise costs.
- how does this impact USMCA / Mx???
Backlinks: Bullet Journal:Daily log:11 Nov:wk 04:US MX energy brief