Donald Trump wants to put up protectionist trade measures in order to bring back jobs to America. However, according to HIS Global Insight's chief global economist, it would not do so and would only hurt the people Trump wants to help.
In an exclusive interview with the Business Insider, Nariman Behravesh, who works as the chief economist at HIS Global Insight, said that Trump's protectionist plans are risky, and he discourages people from believing that it will bring jobs to the United States. He explained that protectionism does not help people but rather makes it difficult for low-income families to get by.
The example he cited was raising the tariffs and costs for Chinese imports. Inflation would be impacted by it and struggling families that used to buy the low-priced Chinese goods can no longer do so because it would have become expensive due to tariffs.
Trump's stance on trade is to implement protectionist measures against it in order to protect workers. The line of thought is that local manufacturers will be able to provide jobs and products to Americans seeing as it would be cheaper to do so instead of expensively producing it elsewhere and then importing it.
Behravesh stated that Trump's protectionist plans, combined with a Hard Brexit, could go ill for the world and not just the United States. A report made by the HSBC, for instance, revealed that $1.2 trillion of global trade value could disappear if the political situation became so.
Such a decline in trade will lead to a fall in production. Subsequently, there will be fewer jobs available to many. However, according to Behravesh, businesses and consumers do not put much stock in the present political uncertainty.
Trump will be inaugurated on Nov. 20. He has already met with leading executives of the technology industry to tackle job concerns.