A Donald Trump presidency could involve more than just bad hair days. The unlikely leader of the GOP didn’t get his name on the ballot with sound economic and fiscal policies. Rather, he has relied on divisive rhetoric and vague slogans like “Make America Great Again.” If this strategy proves successful for him and he is elected in November, Trump could be leading America down the road of economic ruin. And as America goes, so too will the rest of the world.
Below we take a few stabs at what Trump’s rhetoric could actually mean for the US economy.
Trade War with China
If there’s one thing we know about Trump, it’s that he likes to win deals, especially against China. Rather than campaign on free trade and mutually beneficial relations, Trump has actively threatened a China trade war. He has vowed to rip up trade deal and go after the country’s economic practices.
In reality, a trade war with China could be catastrophic for the United States and the rest of the world. It could unleash new waves of protectionism, undoing decades of increased global economic integration.
“We will either renegotiate it or we will break it,” Trump said on the campaign trail last year.
Trump has also vowed to raise tariffs on China as part of his grand plan to “win” more deals. Perhaps someone should remind him that China is America’s third-largest export market. A breakdown of China-US relations would be especially damaging for the west coast, which relies on the world’s second-largest economy for business.
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