Mexico and Canada’s objections to the US’s proposal that NAFTA needs to include a sunset clause. They also object to the requirement for enjoying the tax free Free Trade Zone that more than 50% of car parts are produced in the US, and 85% are from the three countries. Trump even threatened to terminate NAFTA. The US’s objective is to reduce their trade deficit and the loss of manufacturing jobs. There are some possible risks. First, if the agreement is passed, the international competitiveness of the US auto industry will decline, and the cost of production will increase. Second, if NAFTA is terminated, then the production and employment of the three countries will be affected because their industrial chain is highly integrated after 23 years of deep cooperation. Trump has instigated multiple acts of trade protectionism. On January 23, 2017, Trump formally announced that the United States withdrew from Trans-Pacific Partnership (TPP). The purpose of the Obama administration’s implementation of the TPP was to weaken China’s trade advantage by establishing a regional free trade agreement that would allow the US unrestricted access to the Asia-Pacific market. In fact, while the TPP policy was conducive to consolidating the US’s position in the Asia-Pacific region, it would lead to the outflow of some industries and cause structural unemployment. Trump announced his withdrawal from the TPP as soon as he took office, and added tariffs. The main purpose of his trade policy is “America first” through the promotion of trade protectionism to protect the US labour market, reduce the trade deficit and revive the manufacturing industry. This will protect the development of local businesses and increase jobs. However, there are consequences for withdrawing from the TPP. Trade protectionism is contrary to the globalisation of free trade. If the US implements trade protectionism for a long time, its international influence will be weakened, especially its economic and political influence in the Asia Pacific region.

Trump’s immigration policy also showed an intransigent attitude. The United States is the largest immigrant country and its immigration policy has always been an important topic. Trump’s immigration policy maintains protectionism. The biggest concern is Trump’s establishment of a wall at the US-Mexico border to prevent the inflow of drugs and illegal immigrants. In addition, the requirements for immigration applications have been raised, and immigration quotas will be given to high skill and high salary people. These measures can reduce government spending on relief and reduce drugs and crime. However, it has seriously affected the relationship between the United States and Mexico.

The US’s $1.5 trillion tax reform policy has also received widespread attention. Corporate income tax fell from 35% to 15%, lower than the average level of OECD, and personal income tax also declined. The new tax reform policy will reduce the U.S. government’s income by 1.5 trillion US dollars. However, when companies return to the United States, the manufacturing industry will improve and create more jobs, which will increase domestic consumption. Capital began to flow back to the United States. The credibility of the government will be enhanced, the exchange rate