America's Contraction Of Free Trade Is A Double-Edged Sword.

In the eastern part of the United States, a large number of cities are heavily dependent on exports, and many cities and towns in the East and west coastal areas have a large number of jobs related to exports. Since Trump became president of the United States, worries about trade war have intensified, as if the White House could explode the heavy bomb hanging overhead at any time.

Like China, the United States has a huge number of industries and jobs that depend on exports. A trade war may save some jobs lost by free trade, but the cost is considerable.

It is easy to see from Trump's and his economic team's position that contraction free trade The purpose is to preserve domestic jobs and revitalize the declining "made in the United States". But the fact is not quite so. In the United States, a large number of export dependent employment will be lost because of trade protectionism.

For example, New York, Houston, Losangeles and San Francisco have a lot of work related to exports; claiming that the rust belt that has lost much of their work due to free trade (around the five Great Lakes areas) is actually gathering a large number of cities that are highly dependent on exports, including Chicago and Detroit, which are famous for its automobile industry. In Losangeles, there are 3 million 800 thousand jobs related to exports, and exports of goods and services contributed 1 trillion and 200 billion US dollars GDP.

At the same time, the main export commodities in various regions, such as the five Great Lakes, are exported mainly by automobiles and transportation equipment; Iowa exports agricultural products; Houston city group mainly exports oil and chemical industry; Portland exports more electronic and computer equipment; the east coast also has many exports of medicines, aviation equipment and tires.

Economists predict that adopting trade protectionism to bring employment back to the United States will bring unexpected negative consequences. For example, high tariffs on imported goods will increase the cost of parts and equipment of American manufacturers, thereby reducing commodity profits. More seriously, trade wars will lead to a full rise in commodity prices.

The Brookings Institution's research shows that the impact of trade war on American society will be enormous and extensive. About 6 million jobs in the United States are directly related to the export industry, and 6 million jobs are indirectly related to exports. Although different cities and regions in the United States have different dependence on exports, the lowest 5% of them are dependent on exports, most of which are higher than this level.

The Brookings Institution listed American economy Cities most dependent on exports and the most export related jobs. The results show that New York, Losangeles, Houston, Chicago, Dallas and Seattle are all places of trade. Exports of goods and services trade exceed US $50 billion each year, accounting for 25% of the total exports of the country.

In addition, some small and medium-sized cities in the central and western parts producing auto parts and industrial products are also at the forefront. Some coastal cities that export chemicals and petroleum by-products are also highly dependent on exports. For example, in the first place, Columbo, Indiana, is the headquarters of Cummings, a well-known engine manufacturer. Many car manufacturers are active here, and 50% of the economy depends on exports. Beaumont, Texas, whose main business is petroleum processing, is 40%. Exit Attachment was second.

Since taking office, Trump has fulfilled many of the anti free trade commitments promised during the campaign, including the withdrawal of the trans Pacific Partnership Agreement (TPP), renegotiation of the 12 year old North American Free Trade Agreement (NAFTA), and the appointment of Peter Navarro (PeterNavaro) as the chairman of the White House's National Trade Council.

As a result, the US's tightening of trade freedom has been closely watched by all parties.

Most directly affected are Canada and Mexico. US exports to Canada support about 9 million jobs in the United States. Ildfonso Guajardo, Minister of the Ministry of economic affairs of Mexico, also said that US companies invested more than 100 billion dollars in Mexico, and Trump's tax reform plan, infrastructure plan and trade war threat will all have an impact. The annual bilateral trade between the United States and the United States is about 580 billion dollars.

In addition, Trump and his trade team also issued varying degrees of trade threats to Germany, South Korea and Japan, including accusing Germany of using the "seriously undervalued" euro to strengthen its trade advantages; criticizing the Korea us free trade agreement to reduce the employment position of the US motor industry; requiring Japanese car companies to build their factories in the United States, otherwise they will impose heavy taxes on the exported cars exported to Mexico by their factories in Mexico.

In this regard, the German Federation of industry and Commerce called for strengthening investment in Germany to deal with Trump's trade threats; South Korea indicated that it should more communicate with the United States about the benefits of trade between Korea and the United States, while the Japanese side put more effort in saving their most valued TPP.

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