President Trump is a great businessman. How could he build such an empire if he knew nothing about the trade, right? However, his new position as the U.S. president is not a business gamble. For four years, his decision will shape the nation and everyone else living in it. Soon after assuming office, he already made quite a few daring moves involving travel bans and more travel bans in his serious stance against terrorists and illegal immigrants. Well, it does not come as a surprise since he has been very vocal about his position on it for years now.
But other aspects of nation building are also affected by his unorthodox policies. While he gives utmost priority to defense, immigration and safety and security of everyone, he gives less importance to other equally important issues like education, trade, the arts, and many others. As a businessman himself, he should be a genius already when it comes to business policies that can help boost the country’s economy. However, it seems like his business acumen isn’t manifesting yet in his unprecedented leadership.
The United States broke with other large industrial nations over trade on Saturday as the Trump administration rejected concerns among allies about spreading protectionism and made clear that it would seek new approaches to managing global commerce.
At a meeting of finance ministers and central bankers from the Group of 20 industrialized and emerging nations and the European Union, Steven Mnuchin, attending his first major international gathering as Treasury secretary, signaled that American policy would follow the campaign promises made by President Trump to put “America first” and review existing trade agreements to seek better deals for the United States.
As a result, the ministers’ joint statement, normally a study in blandness, became an unlikely focus of controversy here. The representatives could agree only on a tortured compromise stating, in effect, that trade is a good thing. Adjectives like “open” were dropped, and the ministers omitted language used in previous communiqués that condemned protectionism, repudiating decades of free trade doctrine.
No matter how powerful the U.S. may be, it still needs to maintain positive business and political relations with other countries or risk suffering from big unforeseen losses. Take for instance dealing business with the mammoth that is China.
For years, American politicians and business leaders have demanded China approach its economic policy in a manner more similar to the United States. They have pushed the nominally communist country to cut support to its state-run enterprises, drop barriers against foreign goods and level the playing field between Chinese companies and their foreign competitors.
But as President Trump meets with Chinese President Xi Jinping in Mar-a-Lago this week, he may take a markedly different approach: threatening that the United States will soon act more like China.
Trump’s campaign tapped into deep skepticism about free trade, and as president he’s promising to govern with an “America first” economic nationalism that includes using government resources to help domestic industry and leveraging trade policy to help insulate American businesses from foreign competition. It’s an approach that sets Trump apart from traditional Republican allies who have championed free markets and looks surprisingly similar to the Chinese tactics Americans have criticized in the past.
“Mr. Trump seems to want to move the U.S. toward China’s approach, rather than move China toward the U.S. approach of open trade and globalization,” says Eswar Prasad, a professor of trade at Cornell University. That represents a shift in strategy from the past, when U.S. leaders aggressively proselytized the benefit of open markets, even if they didn’t always wholly achieve them at home.
“He seems to want the U.S. to be more like China than China to be more like the U.S. And I’m not sure that’s the best path for the U.S. to go down,” Prasad says.
Doubts shadow many of the policies of the Trump administration including that of free trade. Even the Wall Street feels the tension after the recent Syria bombing and the U.S. economy that still appears to be in a slump. Trump practically won by gaining the sentiments of Pro-Americans especially the ones living in rural areas with a mantra to put Americans first in everything the government does including employment and business opportunities. But regardless of our personal opinions, the best thing we can do right now is to support the policies during this Trump era to help him realize his promise of making America great again.