INTERNATIONAL POLITICAL ECONOMY

Francesca Ria R. Colima March 24, 2018

AB Foreign Service 301 Sir Jumel G. Estrañero

The Political Economy of the United States of America: Trump’s “America First”
Policy and its Repercussions to the Chinese Market and to the U.S.’ Ties with the
Philippines

I. Introduction

It was on the 20th day of January 2017 when businessman and billionaire Donald
Trump was inaugurated as the United States of America’s 45th President. It was on this
day as well when he expressed his firm stance of governing United States with a new
vision. A vision the President had guaranteed that would lead to America’s “great
prosperity and strength.”1 A vision that would benefit and would put the American people
only in the country’s utmost priority---the ‘America First’ policy.2
‘America First’ policy is a domestic and foreign economic policy envisioned by
President Donald Trump to benefit each and every American workers, families and
individuals themselves. Thus the policy most likely features protectionism which is an
action done by the government through restricting international trade for the purpose of
protecting jobs, and businesses---strictly translating to the protection of the U.S. domestic
economy---from foreign competitors.3 Protectionist activities are usually done through the
application of tariffs, import quotas and other forms of restrictions.
Protectionism, under this ‘America First’ mantra, seems as a strategy for the
“resurgence of confidence and rebirth of patriotism, prosperity, and pride” 4 according to
President Trump. In his first year in office, the President had already issued 51 Executive
Orders and 39 Presidential Memoranda5 in support for the adherence of this policy so as
to make U.S. great again.

1Douglas A. Irwin, “The False Promise of Protectionism: Why Trump’s Trade Policy Could Backfire”, HeinOnline,
Accessed February 21, 2018,
http://heinonline.org/HOL/LandingPage?handle=hein.journals/fora96&div=61&id=&page=
2CNN, “Trump: America first and only America first”, YouTube video, 1:20, Posted January 20, 2017,
https://www.youtube.com/watch?v=dIaoZqMrbCo
3”Protectionism”, Investopedia, Accessed March 8, 2018, https://www.investopedia.com/terms/p/protectionism.asp
4TIME,
“President Trump Stresses ‘America First’ in National Security Speech | TIME”, YouTube video, 1:48, Posted
December 18, 2017, https://www.youtube.com/watch?v=5pJl43DLxVk
5Chansok Lak, “Trump’s First Year in Office: What ‘America First’ Policy Achieved?”, Academia, Accessed February
20, 2018, https://www.academia.edu/35615621/Trumps_First_Year_in_Office_What_America_First_Policy_Achieved
 On this orders and memos the President formally issued, some of which are the U.S.’
withdrawal from the Trans-Pacific Partnership (TPP), renegotiation of agreements for the
North America Free Trade Agreement (NAFTA), immigration ban, measures on the steel
and aluminum dumping, lowering trade deficit and collection of import duties, and, of
course, the ‘Buy American, Hire America” order.6

6Rebecca Harrington, “Trump signed 90 executive actions in his first 100 days — here's what each one does”, Business
Insider, May 3, 2017, Accessed March 8, 2018, http://www.businessinsider.com/trump-executive-orders-
memorandum-proclamations-presidential-action-guide-2017-1
II. A. Statement of the Problem

Trump’s desire of prioritizing America, of putting its people’s interest first, was not
only publicized during his inauguration. In fact, it was during his electoral campaigns when
he first supported this view; a demand actually raised by the white working class. This
was then capitalized by Trump; thus led to his victory. As he won the election and, now,
has been ruling the State for almost 15 months, a lot of questions have arose of what
Trump’s foreign policy could and would actually mean. There are also no assurance of
how far Trump’s protectionist measures and actions could go.
In order to have a grasp of the subject matter herewith, this study ought to explain
and give probable and/or plausible answers to the following questions:

1. Is it really necessary for President Donald Trump to implement such policy of

protectionism? What are the factors that triggered the formation of this vision? In what
way then would it help the country’s political economy?

2. Would the policy greatly affect the economy of China who is in fact a rising economy
in Asia and of the world? What consequences could it bring both to China and the U.S.?

3. With the U.S.’ relation with the Philippines, would these protectionist activities cause a
severity in their relationship?

4. How likely would Trump’s promise of protectionism last in the long run? Would he be
able to secure his foreign policy even before or after the next presidential election?

B. Methodology

Critique/Analysis
Various news articles, journals and other sources of information, from the last five
years, had been used in the study to comprehend what Trump’s ‘America First’ policy
means and if it is really necessary to implement. Moreover, this approach would be useful
in assessing if the implementation of such policy could still be the proper way of resolving
economic problems and would the policy still be beneficial in the world today.

SWOT Analysis
Protectionism might have its advantages, disadvantages, benefits and even its
drawbacks as well. Through Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Analysis, the reader will have an idea why a country must or must not resort to a
protectionist action. “America First”, as the study would affirm, is not mainly about the
U.S.’ isolationism. This study will then try to elaborate the important details overlooked by
some people
III. Review of Related Literature

a. Foreign Literature
According to Dr. Howard Stoffer in an article in 20167, President Donald Trump has
left everyone baffled of what he actually meant by his “America First” policy. But as
articulated in his promises and declaration during his presidential campaigns, the
outcomes of his American-based foreign policy could be seen something like the
following.
First, Trump’s expression of building “The Wall” in the borders of America and Mexico,
and the deportation of about 11 million undocumented aliens (if approved by Congress),
would drastically change U.S. immigration policy and may affect a lot especially
Mexicans, Arabs and Muslims. A travel ban was considered also to be implemented to all
Muslims, restricting entry to U.S.
Second, the U.S. would withdraw from some multilateral agreements and even in
some defense treaties and other free trade or any trade agreements. Backing out from
these accords would cause grave outcomes like a worsening global warming if it abandon
the Paris Climate Change Agreement, cause a “disruption in the global supply chain” by
withdrawing from NAFTA or other trade agreements, and spur a global trade war due to
“the imposition of heavy tariffs” to exports from other countries. Furthermore, U.S. would
leave its allies and friends and might provoke nuclear war.
Third, those abandoned allies by the U.S. would turn to China or Russia for security.
Because of the increase military action of the America against terrorist groups (i.e. ISIS),
this might cause severe casualties and might engender worse extremism and terrorism.
If NATO would not be able to offer assurance of protection to the states and countries
involved due to the renegotiation the Trump administration sets, this would then give
signal to other superpowers to take action.
Nevertheless, there is still no assurance what could actually happen in Trump’s
foreign policy. But his approach and the repercussions that this may bring to America,
under the ‘America First” policy might perhaps lead to self-destruction.

b. Local Literature
American people lost their jobs and said that it was because of NAFTA and other
countries involved in trade practices with America; thus prompt the U.S. President to
revive trade protectionism. But the repercussions brought by protectionism would not only
affect that of the U.S. This would cause a collateral damage to the economies of other
countries. Restrictions on trade would also affect the international competition which is
vital to the growth of economies. If trade practices were limited only to the domestic
borders of one country, then it would only limit and restrain one's economy's potential
growth. Even China saw the benefit brought by an 'open trade policy' because of the

7Howard Stoffer, “What Trump’s ‘America First’ Policy Could Mean for the World”, TIME, November 14, 2016, Accessed
March 11, 2018, http://time.com/4569845/donald-trump-america-first/
opportunities it brings like a "better access to world market."
Restraining an open trade practice would not only affect companies and businesses.
It would harm consumers as well because of the imposition of high tariffs to foreign
products. If trade protectionism is "to protect jobs", then it must be well laid to whose jobs
would be protected since this might "kill or preclude many jobs in the process." For the
purpose of global cooperation, U.S. and countries espousing the idea of protectionism
must deliberate whether such restrictions would be for the common good. In policy-
making, countries must promote the "pursuit of the greatest good for the greatest
number."8

c. Local Literature
Philippine President Rodrigo Duterte shares some common values with the U.S.
President Donald Trump. One of which is strengthening the national interest through
serving its citizens first; this is the main idea of Trump’s “America First” policy. President
Duterte supported that fact as well; believing that the country had an “independent foreign
policy” and must put first the interest of the Filipino people.
Trump highlighted in his inaugural speech the harsh realities of the American people.
Some were unemployed, some experienced poverty. Hence, he demonstrated a two
simple rules: “Buy American, Hire American”. U.S. will still interact and participate with
other nations, but they should understand the right of U.S. to put its nation’s first.
Despite the U.S. protectionism, the Philippine president doesn’t have any issue on
Trump. Both countries are willing to work in bolstering their ties with regards to “sovereign
equality and mutual respect”.9

d. Foreign Literature
Withdrawing from the Trans-Pacific Partnership (TPP) had been Trump’s first action
among many protective measures in his protectionism strategy, under his “America First”
policy. Trump viewed trade as a zero-sum game and those beating U.S. in terms of trade
was deemed as a threat; thus led him to his exit from the trade agreement and resulted
to his undertaking of protective measures to secure the American interests. Another
measure in this Trump-led protectionism was the slapping of higher tariffs to imports. U.S.
had have a trade deficit among the TPP members, and this is exactly what Trump referred
to as “unfair trade deals” and what he is trying to avoid. Trade agreements, like TPP and
the North American Free Trade Agreement (NAFTA), had also implication to employment.
Because of the present lower cost of labor in countries associated with NAFTA, TPP or
others (i.e. Vietnam), U.S. companies tend to take advantage of it which in the end
resulted to job loss. Thus U.S. labor unions and other American personalities had praised

8Llanesca T. Panti, “Duterte backs Trump’s ‘America First’ policy”, The Manila Times, January 23, 2017, Accessed
March 11, 2018, http://www.manilatimes.net/duterte-backs-trumps-america-first-policy/308287/
9Cielito
F. Habito, “Trade protectionism would rather harm than help: Philippine Daily Inquirer Columnist”, The Straits
Time, January 13, 2017, Accessed February 20, 2018, http://www.straitstimes.com/asia/se-asia/trade-protectionism-
would-harm-rather-than-help-philippine-daily-inquirer-columnist
Trump in his measures despite the hate he had been receiving from others.
Argument if U.S. should have left or remained in the TPP started. Some maintained
that it was right for Trump to withdraw from TPP from an economic standpoint, and other
thought that U.S. should have remained for economic reasons. But, according to some,
whether or not the TPP agreement is disadvantageous, the U.S. shouldn’t have left or
slapped tariffs because it might prompt a trade war. This threat of trade war will be difficult
to both sides. As in the case of U.S., it would be difficult for them practice trade with
countries in the Asian region, which is said to be the “fastest growing market in the world.”
It would hurt as well the economy of the surplus countries in which the U.S. had run a
trade deficit.
Aside from the minimal economic benefits provided by the TPP, it has some strategic
benefits it could offer that would actually benefit U.S. TPP, according to CNBC’s Everett
Rosenfeld, “is a key component of the American geopolitical ‘pivot’ toward the Asia-
Pacific region.” It is through it as well that the U.S. could help its Asian trading partner
and may reaffirm its interest in the region. Furthermore, leaving TPP would actually
represent a loss of U.S. influence in Asia, and this will lead Asian countries, like what
Japanese Prime Minister Shinzo Abe said, to collaborate with China.
A shift in the foreign policy is the evident feature of Trump’s administration; marking
trade as it higher priority rather than defense. But Trump’s “tough talk” must be a strategy
to force it trading partners back to the negotiation table.10

e. Local Literature
Although the country’s export to the U.S., amounting about 3% of the gross domestic
product (GDP), would not seem to be seriously affected, the Philippines is yet among the
most vulnerable country to Trump’s ‘America First’ policy. Although Trump’s tough talk on
his trade protectionist policy focused mainly on China and Mexico, the Philippines might
suffer as well from such policy.
The business processing outsourcing (BPO) sector and remittances could get hit if
Trump changes his focus from the threat brought by manufacturing jobs to outsourcing
services and remittances. BPO contributes a total of 8% in the country’s GDP. Over a
million people would suffer and get affected as well if hit by protectionist measures.
Besides, remittances would highly be at stake too; which would lead to a slow remittance
growth.11

10Antonio
Graceffo, “Trump’s New Protectionism: Economic and Strategic Impact”, Foreign Policy Journal, February 1,
2017, Accessed February 20, 2018, https://www.foreignpolicyjournal.com/2017/02/01/trumps-new-protectionism-
economic-and-strategic-impact/
11MayvelinU. Caraballo, “PH among most vulnerable to ‘America first’ policy”, The Manila Times, February 4, 2017,
Accessed March 12, 2018, http://www.manilatimes.net/ph-among-vulnerable-america-first-policy/310430/
f. Local Literature
President Donald Trump’s reasons for his turn to protectionist policies might be
because of the American loss of job and employment, a “one-sided” trade deal, and trade
deficit. Yet, on the President’s political whims, there is a possibility for the Philippines to
suffer. His protectionist stance on economic and other activities would lead to jeopardy.
Narrowing trade deficits would be done through a ‘border-adjustment tax’ which would
burden imports but would increase the costs on exports. This would damage the
Philippines more. There would also be a dollar appreciation; thus, making it harder for the
country to pay our “dollar-dominated debt”. It would burden Philippine exporters and
consumers as well.12

g. Foreign Literature
The rising protectionist tide by the United States will definitely affect the Chinese
economy negatively. Should the U.S. impose tariffs to Chinese export products as high
as 45%, a significant proportion of about 20% in China’s gross domestic products (GDP)
which actually came from the exports from U.S. would absolutely pull the country down.
But People’s Republic of China’s President Xi Jinping, in his address in the World
Economic Forum in Davos, Switzerland, expressed his aversion against protectionism;
that pursuing such act was “simply not possible.” More so, in a Beijing summit, he also
stated the need for the states “to seek for a win-win result through greater openness and
cooperation […] and reject protectionism.”
China had presented a proposal of a resolution on the said Chinese steel and
aluminum dumping activities to U.S President Donald Trump; however, rejected in July
2017. U.S. deemed it necessary to impose trade sanctions such as additional special
tariffs if these dumping actions had harmed the U.S.’ national security. Yet, this is not the
only trade practice that put China under investigation. The impact of its trade policies on
intellectual property (IP), innovation and technology are being studied and observed too.
If proven harmful and menacing to the American’s interests, then Trump would likely
resolve the issue by charging China with trade sanctions and other measures in
accordance to Section 301 of the Trade Act of 1974.
U.S. has been China’s largest trading partner; thus, tariffs as high as 45% if
implemented to China by the U.S. might trigger an unwanted trade war between the two.
China might, likewise, counter the tariffs from the U.S. by placing tariffs on American
exports as well. Although China was protecting businesses as well before, it has gradually
opened up to foreign investments due to some agreement with the World Trade
Organization (WTO). In fact, it had allowed open access to foreign investors through Free
Trade Zones (FTZs). But with the crippling effect of the U.S. protectionism to the Chinese

12Weslene Uy, “Explainer: American protectionism a bad sign for the Philippines”, Philstar.com, February 7, 2017,
Accessed March 13, 2018, https://www.philstar.com/headlines/2017/02/17/1672887/explainer-american-
protectionism-bad-sign-philippines
economy, this progress on China’s trade regime development might be affected and
might probably suffer.13
h. Foreign Literature
President Donald Trump had emphasized that the strength of its home will be the
focus of America’s National Security Strategy. In an article by Salama, 14 she listed the
“four pillars” of Trump’s plan: “(1) defending the homeland; (2) American prosperity; (3)
advancing the American influence; and (4) peace through strength”. All four encapsulated
Trump’s “America First” mantra.
The framework of Trump’s policy, of making America stronger, however, was not
“dramatically different” as acknowledged by the White House. But his ways of pursuing
the American interests was something unknown to them. Trump must have tackled
confrontations way different than his predecessors. He described Russia and China (“a
revisionist powers”), rogue states of Iran and North Korea and “challenges by
transnational threat organization” as the major challenges facing America’s “global
contest for power”. His way of confronting allies and rivals to earn respect, as he
expressed, was through military power which is very unusual since it was through the
exercise of diplomacy and dialogues the past administration would undoubtedly use.
Trump sees himself as “law and order president”, but as he returned to America’s
primary principle of serving its citizens’ interests first, which is the first and foremost duty
of the government, he then got himself tangled from controversies arising from the
measures he’s taking.

i. Local Literature
Trade relations, both of China and U.S.’, are heading to trouble because of President
Trump’s “outdated Cold War mentality.” Trump had always expressed his policy of
‘America First’; that the U.S. economic security is its national security. He also
emphasizes China as its rival who steals intellectual property (IP) to U.S. firms; thus urge
the U.S. to charge sanctions against China by imposition of new tariffs and restrictions.
But China had warned U.S. that its trade protectionist would be dangerous and would
harm its own economy as well. China might also dare the U.S. actions and be taken to
the dispute settlement body of WTO. However, both declare that one is more vulnerable
to the loss brought by trade protection and restriction. U.S. officials believed that China
needs U.S. markets to counter economic recession; China opposes, saying that it was
Trump that would suffer more from the pressure of his own protectionist policies. 15

13Sara Hsu, “Rising U.S. Protectionism May Hurt China’s Economy and Begin a Trade War”, Forbes, September 12,
2017, Accessed February 27, 2018, https://www.forbes.com/sites/sarahsu/2017/09/12/rising-u-s-protectionism-may-
hurt-chinas-economy-and-begin-a-trade-war/#4e25a7af1a32
14Vivian
Salama, “Trump’s national security strategy emphasizes strength at home”, NBC News, December 18, 2017,
Accessed March 11, 2018, https://www.nbcnews.com/politics/national-security/trump-national-security-strategy-
emphasizes-strength-home-n830846
15IanBremmer, “Tensions in the US-China relationships”, The Philippine Star, February 7, 2018, Accessed March 13,
2018, https://www.pressreader.com/philippines/the-philippine-star/20180207/281638190655924
j. Foreign Literature
Domestic concerns and his recent National Security Strategy (NSS) when it comes
to foreign policy were put emphases on the first State of the Union Address of U.S.
President Donald Trump. His address manifested the Trump’s administration views and
conceptions about the world. According to its NSS, U.S. is likely seen in a center of a
three level perilous competitive world which threatens its interests, economy and values.
These are the rivals states (China and Russia), terror groups, and “rogue regimes” (of
North Korea and Iran). Its National Defense Strategy (NDS), nevertheless, patently stated
that competitions among countries, with China as its foremost competitor, has now been
the U.S.’ primary concern. Unlike his predecessors’ NSSs which rather acknowledge the
U.S.-China relations and China’s development, Trump focused mainly on the countries
differences and competition.
To overcome the competition with China and Russia, President Trump asked the
Congress for an increase in the military budget and to fortify and modernize the U.S.’
nuclear arsenal. But these will only cause menacing effects for the international
community, the U.S.-China relations and the U.S. itself. It would be harmful for the
international community because it would only threaten to divide the world into “camps of
free societies and repressive regimes.” It would also affect the U.S.-China relations for it
will damage the cooperation of both countries that was built under Obama’s
administration and would be harder for the U.S. to contain China. It would damage as well
the U.S. itself because, though it was a progressive country, it still has problem in its
financial deficit. Thus might make its situation heavier. Thereby to avoid a worse
resolution, “multilateral cooperation and global governance” must be observed. Trump’s
administration has only little to win if it would go against China and Russia. But in order
to “make America great again”, U.S. must cooperate with China.16

16TaoWenzhao, “Trump’s Dangerous State of the Union Address”, China-US Focus, February 8, 2018, Accessed
March 11, 2018, https://www.chinausfocus.com/foreign-policy/trumps-dangerous-state-of-the-union-address
SYNTHESIS
‘America First’ policy tends to be an answer to the great loss America got because of
unfair trade deals and practices. Since these mostly affect the life of the American people,
U.S. President Donald Trump saw a need to search for a remedy that could alleviate the
problems of his nation. A much sterner measures on immigration, national security and
on trade activities were seemed to be the best resolutions to these problems. These,
however, translate to protectionism. Trump had withdrawn from TPP, had planned to
renegotiate NAFTA and other trade agreements, had backed out from the Paris Climate
Change Accord, had imposed tough policies on immigration, had expressed to implement
heavier tariffs on imports and had threatened to counter rivals through military
procedures. These are just among the few policies Trump had to secure its country’s
economic interests.
Negative outcomes, however, could spur from these protectionist measures.
Retaliation, a collapse in the countries relations, and a decline in the economic
development of a country are just some of the many repercussions this protectionist policy
might bring. These, however, do not only put the countries outside U.S. (i.e. China and
the Philippines) in jeopardy. It could damage and bring the U.S. economy down as well.
IV. Presentation, Analysis, and Interpretation of Data

‘America First’ policy might not necessarily mean protectionism to Donald Trump and
his administration. However, the methods on how the president use in expressing his idea
somehow translate to protectionism, and this is how people from all over the world
including Americans themselves view Trump’s policy.
Unemployment or job loss, trade deficit, and problems arising from nuclear threat and
undocumented immigrants stimulated the resurgence for a protectionist policy.
Specifically in terms of economics, because these seemed to harm the national security
and interest of the U.S., Trump identified that there should be stricter and tougher
sanctions that must be levied to the sources which cause such economic problems.
Because American people had been losing their jobs due to labor unions exploiting and
taking advantage of the lower labor costs from other countries, Trump was trying to take
back those companies for his nationals to have their jobs back. A report by the American
Institute for Economic Research argued that imports from China, from 1999-2011, robbed
millions of U.S. job opportunities in the U.S. manufacturing industry leading to a major job
loss.17
America’s trade deficit has gone wider because of the dumping activities of surpluses
exported by countries to America and other trade deals it has with other countries.
Shielding U.S. economy by imposing tariffs higher than the usual and withdrawing and
renegotiating trade accords, as they believe, would decrease the gap. However, it might
trigger a global trade war. Countries, especially China, will possibly retaliate against U.S.
This retaliation, hence, would perhaps “shut down the U.S. exports and cost US jobs.” 18
A slide to protectionism would definitely affect China in various ways as well. China
had been the target of most protectionist measures imposed by U.S. It had been one of
the largest sources of steel and aluminum imports to America. If it then slapped by higher
tariffs, it would seriously affect the Chinese economy. But even though there is a clear
discrepancy in the Sino-US relations, China had appealed to the U.S. to refrain from such
acts that would affect their ties and must seek to respect each other. 19 But if U.S. would
still go on with its implementation of its “America First” tariffs and other trade restrictions,
it would be a tit-for-a-tat exchange between China and U.S.
China had recently laid out his plans on countering U.S. protectionist actions. He
contended that if U.S. would impose ‘indefinite tariffs’ and other restrictions 20, then China
would do the same. The U.S. agricultural sector would be the most vulnerable to this one.
Second, there would be an unfavorable conditions from the U.S. companies regulating in

17,18Marianne Ojo, “Free Trade and Trade Protectionism: US-China Relations and Post Brexit Impact on UK-China
Relations”, Nova Publications, Forthcoming, Last revised November 23, 2016, Accessed February 27, 2018, Available
at SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2846955
19Catherine Wong, “Donald Trump brands China a military rival in US reboot of great power strategy”, South China
Morning Post, Last update February 1, 2018, Accessed March 2, 2018, http://www.scmp.com/news/china/diplomacy-
defence/article/2131445/donald-trump-brands-china-military-rival-us-reboot
20Eamon Javers, and Kevin Breuninger, “Trump considers indefinite tariffs, investment restrictions against China:
Source”, CNBC, March 13, 2018, Accessed March 16, 2018, https://www.cnbc.com/2018/03/13/trump-is-considering-
imposing-tariffs-on-60-billion-of-chinese-goods-reuters-citing-source.html
China. Third, an exchange rate depreciation might happen. Fourth, China might not buy
treasury in U.S. bank. Lastly, and might actually be the most alarming (is), that China
might have a change in its position on North Korea and other geopolitical issue. 21
Another repercussion the protectionist sentiment could bring to U.S. is a change in
the setting of global leadership. If U.S. would continue its tough talks against ‘unfair trade
practices’ and “America First” tariffs and restrictions, then countries might shift to China
for help and cooperation. With China’s establishment of Asian Infrastructure and
Investment Bank (AIIB) and its One Belt, One Road Initiative (OBOR), China would have
the capacity to fill the void the U.S. had left. This would then acknowledge China and Xi
Jinping’s power in the entire world.
Another vulnerable country aside from China is the Philippines. U.S. is one of the
largest investors in the country’s business-process outsourcing (BPO) sector.
Furthermore, the BPO contributes to almost 10% of the country’s GDP 22, and had
employed over a million of Filipino people. Since protectionist policies still “hover” over
the U.S., U.S. investors would find it hard to set a deal with the Philippines BPO sector
and would also slow down BPO expansion.23 Employment would be affected as well. Yet,
on US-RP relations, both presidents confirmed a great and mutual relationship with each
other.
According to Philippe Legrain24, protectionism would lead to the downfall of U.S.
trading practices. It would engender “inflation, slow economic growth, disruption of supply
chain, and lower export for the U.S. companies.” This, as being said, obviously ascertains
that protectionism would bring no good to one’s economy. That it is bad for the economy.
Trump’s promise of protectionism, if it further deteriorates U.S.’ relations with other
countries and its economy itself would not last in the long run. People might then yearn
for a change where economic nationalism is seen beneficial to everyone. This might also
prompt the people to elect a new president that has an affirmative way of solving trade
problems—in a way that would not worsen the situation. A foreign policy like this would
not even secure and guarantee protection to America. It would only lead to a worse
economic condition where both producers and consumers suffer together.

21Evelyn Cheng, “Trump's tariffs may anger China and here's how it may retaliate”, CNBC, March 1, 2018, Accessed
March 16, 2018, https://www.cnbc.com/2018/03/01/trumps-tariffs-may-anger-china-and-heres-how-they-may-
retaliate.html
22MayvelinU. Caraballo, “PH among most vulnerable to ‘America first’ policy”, The Manila Times, February 4, 2017,
Accessed March 12, 2018, http://www.manilatimes.net/ph-among-vulnerable-america-first-policy/310430/
23Bianca Cuaresma, “Trump’s protectionist policies to slow down BPO expansion in PHL this year–BMI”, Business
Mirror, January 21, 2018, Accessed March 16, 2018, https://businessmirror.com.ph/trumps-protectionist-policies-to-
slow-down-bpo-expansion-in-phl-this-year-bmi/
24Bloomberg, “How Trump's Trade Policies May Impact the Global Economy”, YouTube video, 2:48, Posted November
10, 2016. https://www.youtube.com/watch?v=9oxHB-tBu-g
V. Summary, Conclusion, and Recommendation

Summary
‘America First’ policy is a method to preserve and protect the American interests; to
secure U.S. nationals from the ravages brought by other countries because of economic
competition, nuclear threat and terror attacks. Protectionism may lead to great prosperity
and strength and may make America great again if it does not harm other countries. But
the way the protectionist policy is being implemented tends to divide America as a nation.
Trump obviously deviates from the traditional actions of his predecessors. He had left
everyone perplexed because of the uncertainty of what ‘America First’ would actually be
like. But one thing is for sure right now--that ‘America First’ policy means countering trade
practices U.S. deemed as a threat to its economic progress.

Conclusion
Protectionism, specifically on the way the Trump administration executes it, would not
resolve the economic problems America is facing; rather it would cause a much more
grave outcomes to the U.S. in the same way it affects other countries. Free trade is good.
An ‘open trade policy’ would affirm cooperation and global integration. Tariffs,
nevertheless, are not bad. But tariffs higher as it should actually be is worse. If Trump
thought that it is through the imposition of higher tariffs, of an ‘indefinite tariffs, is the
answer to the economic problem his country is facing, then he is actually wrong. It would
only urge countries to retaliate. It would only worsen the problem. Protectionism, or
‘America First’ protectionism, like how economist view and express in technical terms is
“bad, stupid, and dangerous.”25

Recommendation
There are more or less 32 months (starting from the month this study was submitted)
before America decides for a new president or whether to re-elect and maintain its current
leader to the position, and President Donald Trump still has plenty of time to pursue his
‘America First’ policy. There would possibly be more new presidential orders and
memoranda in support of the POTUS’ protectionist actions and there will no doubt be
more problems and issues that will inevitably arise. Because this study has only
investigated and studied the initial activities and outcomes caused by the said economic
policy, this study must be continued in order to see the progress of Trump’s protectionism-
--its success or its downfall, and its effects over time. Supplementary studies and
researches about this would help students and anyone to have firmer grasp and
understanding re the subject. Furthermore, it may provide evidences on what the
repercussions this economic policy brought to the world in the coming generation.

25”This Is What a Potential Trade War with China Means for the Markets”, March 1, 2018, accessed March 16, 2018,
https://www.cnbc.com/video/2018/03/01/this-is-what-a-potential-trade-war-with-china-means-for-the-markets.html.
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