Free trade agreements made the world a “global village”. With fewer restrictions on trade, companies were able to produce products for less by taking labor off shore. During the presidential campaign, Trump announced that he plans to keep labor in US territory. He first targeted companies like Carrier in order to make sure that jobs stay in the US. Though it is still possible to outsource labor in Mexico and other countries that offer lower wages, Trump imposed tariffs that make importing of finished goods back to the US expensive.
Is this a good or a bad thing? For workers based in the US, this sounds like good news. There were unions that even showed their support to Trump. But if you will look closely, this could potentially create a backlash considering the fact that it means a higher price that becomes costly to consumers.
Also, will businesses be able to hire the same number of workers in the US when it means higher cost for them, as well.