Journal 1

Carlos Cerna Reichmann

ENWR 1507

Reflective Journal

09/22/2019

                                                    Trump’s Tariffs Fail Again                                                   

            This article states that in contrast to what the Trump administration wants to depict, there has been a substantial slowdown on the recovery of jobs in different industries affected by its tariffs.

The article starts by stating that Trump is a recognized business man that has the characterization of exaggerating actions, although the author thinks they are mostly truthful in essence.

Trump has claimed that the USMCA ( most well known as New NAFTA) is bringing and will bring more jobs to the manufacturing revival. The USMCA is a trade agreement between the USA, Mexico and Canada that requires automobile companies to make their cars with mostly US parts. Automakers will definitely suffer a higher  production costs due to to the fact that not all the materials necessary for the production of automobiles are necessarily the cheapest in the United States. However, if the US economy is as strong as Trump says, the offshoring of companies will take longer and more businesses will stay in the United States. Trump assures that the relocation of companies will not occur.

Although some companies may have stayed in the United States like Toyota, if we try to see the overall picture the data greatly contradicts Trump’s claim even according to the US Commerce department due to tariffs, proving that Trump’s claim needs to be at least taken with a grain of salt.

The author has a clear view of what is happening in international foreign economic affairs and does a very competent job by connecting the ideas of what is going to occur to businesses if the tariffs are not withdrawn.He also places the right amount of skepticism to both sides of the argument given by the left and the right, which allows to create a more balanced analysis. The intended audience of this article are people interested in investing in the stock market and on a more general sense potential voters for the 2020 election.

Reference:

Rugy, V. (2019). “Trumps Tariffs Fail Again”. Reason Magazine.  Retrieved from                        https://reason.com/2019/09/05/trumps-tariffs-fail-again/