Tuesday, November 15, 2016

Retail Federation Watching for Donald Trump’s Trade Policy

Retail Federation Watching for Donald Trump’s Trade Policy

Many businesses and industries were waiting for the elections results in order to plan for the years to come, based on the policies to be adopted by President-elect. In this case, retailing is one of the many affected, either positively or negatively, by this new policies and laws.

The impact to retailing could be in two different ways: 1) internationally, with changes in policies and laws to regulate the inflow and outflow of goods between United States and other countries, and 2) locally with labor laws, specifically the increase in overtime age paid to employees. This later rule goes into effect on December 1, but big retailer chains hope that Trump change the policy to any other that benefits the retailers, not the employees. For instance, Wal-Mart has risen annual wages of managers instead of paying them overtime.

Regarding labor, what big companies are waiting for is to be benefited and protected by Trump's policies, leaving aside the employees' welfare: most of the times the priority for these companies is getting the greater profit as they can; and probably, president Trump will help them to achieve that goal. 

On the side of trade regulations, local and foreign companies will be impacted, whether the trade will be encouraged or constrained. in my point of view, since Trump is a business man, what he will try to do is strengthen relationships with other countries in terms of trades, but his policies will have several restrictions to countries he consider not 'suitable' for the United States to do business with, starting with Mexico and probably other Latin American and Middle East countries.

Hopefully, the new regulations to be implemented encourage trade on a convenient fashion for all parties and as a result, the consumer as well.

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