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Foreign producers are worse-off because they sell fewer products on the same price.
A trade war may happen between the US and China because they are the biggest economies in the world.
The principle of comparative advantage indicates that the profits made from free trade outweigh the losses since it provides more job opportunities. This is due to the fact that nations can provide goods of their main strengths. Nonetheless, Trump’s policies will result in deadweight loss. Finally, no one will get any benefits from the protectionist trade policies. His policies will detrimentally harm the poor Americans whom he means to help.
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