Trump’s audacious plan to reverse the early 2000s “China Shock”
In the 2000s, a so-called China shock swept through the U.S. economy, lowering consumer prices while causing massive losses of manufacturing jobs. Former President Trump’s proposed tariff regime would be, in effect, an audacious attempt to reverse it.
The big picture: Trade experts believe that the price of imported manufactured goods would rise significantly if Trump returns to the White House and enacts the aggressive program he has described on the campaign trail. They are not persuaded that a manufacturing renaissance would follow.