Trump's Trade War: The Unintended Consequences

The transcript discusses the effects of NAFTA on the US and Mexican economies, highlighting its success in reducing undocumented migration. It explores the potential negative impacts of ending NAFTA, such as increased migration and illicit activities. The discussion also covers the effects of trade on job displacement, emphasizing that while some jobs are lost, trade generally leads to higher productivity and income jobs. The potential consequences of trade wars, particularly under Trump's proposals, are analyzed, showing significant job losses in the Midwest. Finally, the broader economic impacts of trade shocks on non-traded goods sectors are examined, illustrating how these sectors are affected by changes in the manufacturing sector.

What are the potential impacts of a trade war with Mexico and China on the Midwest manufacturing sector?

How do lower-skilled and lower-wage workers perceive their connection to international trade?