Trump's new trade policy

[stpioc]

On Thursday, CNN reported that President-elect Donald Trump's administration is considering imposing a 5% tariff on all imports into the United States. While the decision is not final, sources told CNN the tariff could be implemented through an executive order in the early days of the Trump presidency. The move is not surprising given that Trump made free trade one of the central topics of his campaign after criticizing China, Mexico, and Japan. 

He suggested putting a 45% tariff on Chinese imports, said he would declare China a currency manipulator on his first day in office, proposed taxing imports from Mexico, argued in favor of "ripping up" trade deals, and called the Trans-Pacific Partnership, or TPP, "a rape of our country." After the election, Trump has said in victory rallies that for trade "you have to look at it almost as a war," asking "who the hell cares if there’s a trade war?” 

"If tariffs are more punitive and lead to a public trade spat with China, markets will get nervous, especially if a sharp, retaliatory, [Chinese yuan] depreciation looks like a realistic response," Ajay Rajadhyaksha, head of macro research at Barclays, said.

The impact of Trump's 5% tariff could be a 'global recession' - Business Insider

Another analysis, from Ball State University, attributed roughly 13 percent of manufacturing job losses to trade and the rest to enhanced productivity because of automation..

The Long-Term Jobs Killer Is Not China. It’s Automation. - The New York Times