|Vol. 17 No. 25
Wednesday April 25, 2018
Trump Effect On Trade - Pt. 9
President Donald Trump has been in office for a little over a year and
in that time he has reversed many Obama-era Executive Orders affecting
Jobs Job One
As a result,
recent economic indicators show increased job creation, a historically
low unemployment rate of 4.1 percent, and record consumer confidence.
What Will 2018 Bring?
President Trump’s priorities are clear—we can expect increased spending on U.S. infrastructure, serious immigration reform, a renewed focus on cyber security, and serious movement on international issues. The Trump diplomatic plan has the potential to help reduce or resolve global conflicts; his unprecedented move to deal directly with Kim Jong Un raises the possibility of a denuclearized North Korea, while his firm leadership can both stabilize the Middle East and improve relations with China and Russia, America’s only rivals.
Get Tough Win Big
to the security benefits that come with these achievements, the U.S. can
also expect to improve its terms of trade through Trump’s get-tough
approach, but there may be pain before those gains can be realized.
Blow Back Rising
it appears that the process is underway with steel and aluminum tariffs,
as well as the threat of further restrictions on imports from China.
About Trade Imbalance
American’s trade imbalance has continued to worsen at the cost of American workers. The numbers since 2009 (listed in billions of USD) have continued to be dangerously negative since 2009:
The Question Is
ask if the President’s challenge to China, Canada, and Mexico, three
of its top trading partners, will reduce America’s trade with those
countries, and will that hurt the U.S. air cargo industry?
Shifting Fortunes Ahead
smaller cargo charter airlines are at risk, just as we saw at the turn
of this century, with some facing liquidation.
As the Trump
administration continues to move aggressively on trade, it cannot lose
sight of the second- and third-order effects of its policies across different
economic sectors, and air cargo in particular.
To Read Part 1 of This Series, Click Here
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