(FinancialHealth.net) – On the same day the Senate began preparing for President Trump’s impeachment trial, they gave the American people a huge win and passed the US-Mexico-Canada Agreement (USMCA). The trade deal will finally replace the widely unpopular North American Free Trade Agreement (NAFTA).
When Trump ran for office, replacing NAFTA was one of his central campaign promises. He blamed the decades-old trade agreement for outsourcing American jobs.
Admittedly, the USMCA is a little difficult to understand if you are not a policy guru, so here are a few of the ways it will help the average American:
- It requires US automobile manufacturers to make more car parts in the US if they want to avoid tariffs. That means people who work in the auto industry have some protections against outsourcing.
- If US companies are assembling their cars in Mexico, they have to do it with more US-made car parts. Essentially, it’s another requirement that reinforces protections for workers in our country.
- US dairy farmers may export more tariff-free products to Canada. If you’re a farmer, that’s terrific news for you.
- America’s gross domestic product (GDP) is expected to increase by $65 billion. When the GDP increases, unemployment decreases and wages increase.
- It will create about 76,000 new auto jobs in the US.
The USMCA is going to create jobs, add protections for auto industry jobs and help farmers. It’s a big win for American families and President Trump.
The bill is currently awaiting the president’s signature.
~Here’s to Your Financial Health!
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