How Does President Trump's Foreign Policy Affect The Economy

James Davis Bishop

Mr. John Lehning

Microeconomics

20 June 2017

President Trump’s Foreign Policy Impact on U.S. Economy

Donald Trump has been our country’s President for well over 100 days now. One of President Trump’s biggest controversies during election and since becoming President has been his foreign policy issue. President Trump has wanted to change America’s foreign policy for years and spoke out against it whenever he got the chance. I have to admit that I personally didn’t know or understand what exactly all pertained to Trump’s foreign policy, but while trying to find out more about it, there was no shortage of information about it. It seemed that since this topic has been what I chose to write about, every time the television

One of the biggest components of President Trump’s foreign policy is his stance on trade with foreign countries. We have learned in this course that one of the ten principles of economics is that trade can make everyone better off. All over the news is the fact that China is one of the biggest competitors in the world economy. This is true because the United States and China produce many of the same products. According to our textbook, trade between two countries can make each country better off. Trade allows countries to specialize in what they do best and to enjoy a greater variety of goods and services. First of all, President Trump has not been in office long enough to know the exact effects his foreign policy will have on the economy. Some things we do know is that the stock market has been gaining ground recently since the news of Trump’s policy his ground in January. The trade war with Mexico, the Trans-Pacific Partnership Trade with Asia, the temporary immigration ban on seven Muslim countries that could hurt the quality of the U.S. workforce will/could all impact the U.S. economy significantly. According to this article, economists expect the economy to take a major fall if a trade war happens. The market would react negatively if a trade war took place. If the U.S. were to put the 20 percent tariff on Mexican goods, it is not certain that people would buy more products in the United States than other countries. Trump’s position on trade seems by all accounts to be quite simple; if the U.S. lets goods in from other countries, then those countries should allow our goods there. President Trump believes that the United States needs to push harder to get into foreign markets. President Trump promised to “Make America Great Again”, but the foreign policy and international budget he has sketched out so far could