- NAFTA will likely be readjusted rather than rewritten or rejected completely under President-elect Donald Trump, reported Sourcing Journal Wednesday.
- The potential effect of the Trump administration on nearshoring is mixed. Some experts argue that the impact will be minimal, since re-localization of manufacturing is more about inventory and markdown reduction, according to MikeTodaro, managing director of AAPN.
- Other experts expect that Trump will target nearshoring immediately, causing a slowdown in nearshoring in order to incentivize the retention of manufacturing within the U.S.
The outcome of President-elect Donald Trump's effect on industry is yet to be seen, but judging by his pre-election concerns, we can guess at likely winners and losers as various industry experts are beginning to weigh in.
Manufacturing, oil and gas are just a few of the targets at which Mr. Trump means to take aim. Removing sanctions on fracking and coal, while curtailing price restrictions on pharmaceuticals, seems to indicate his intention to encourage all means of domestic production, while at the same time ensuring that the U.S. receives a fair shake in any and every established trade deal. Trump's position on nearshoring may have the same desired effect, although economic forces may ultimately have a stronger voice in the discussion.
Rightly perceiving the future President as an entrepreneur rather than a politician, the stock market is already responding to Mr. Trump's potential economic achievements. The question remains however whether Trump's future regulatory policies will reward the stock market's bet.