WS Chronicle

By Algenon Cash

President-elect Donald Trump’s proposed economic agenda – a blend of massive tariff hikes, mass deportations, and costly unfounded tax cuts – threatens to destabilize an already fragile U.S. economy. 

For North Carolina, where agriculture, manufacturing, and hospitality are foundational industries, these policies risk devastating impacts on workers, families, and local businesses. While these proposals may appear bold, they are based on flawed assumptions and require immediate reevaluation. Fortunately, better solutions exist to address trade, immigration, and taxation challenges while safeguarding North Carolina’s economy.

Trump’s proposed tariffs on China, Mexico, and Canada would impose significant costs on imported goods, resulting in higher prices for consumers. According to a Tax Foundation report, the 2018 tariff increases cost American households an average of $1,277 per year. North Carolina, as a hub for furniture, textiles, and retail industries dependent on imports, would disproportionately feel these price hikes.

Tariffs alone are not a sustainable solution to trade imbalances. Instead, the U.S. could adopt smarter trade policies, such as:

• Renegotiating trade deals to lower tariffs on essential goods while addressing intellectual property violations, cheap labor, and other issues obstructing fair competition.
• Investing in domestic manufacturing through improving supply chains, workforce development, and regulatory reform for small businesses to encourage local production and reduce reliance on imports.
• Regional trade alliances that focus on cooperation with allied economies in Europe and Asia to counterbalance China’s economic dominance.

Trump’s plan to deport millions of undocumented immigrants would create a catastrophic labor shortage in industries like agriculture, construction, and hospitality – sectors where undocumented workers constitute a significant portion of the workforce. The American Farm Bureau Federation estimates that deporting agricultural workers could increase food costs by up to 6% while reducing agricultural output by $60 billion annually.

In North Carolina, where agriculture generates $92 billion annually, mass deportation would cripple local farms, drive up food prices, and lead to unharvested crops. A better approach includes:

• Expanding guest worker programs like the H-2A visa system, which allows seasonal agricultural laborers to work legally while ensuring fair wages and protections.
• Offering pathways to citizenship for undocumented workers already contributing to key industries, ensuring workforce stability while addressing labor shortages.
• Investing in automation for tasks such as harvesting and food processing to reduce long-term dependency on manual labor without sudden disruptions.

Trump’s proposed policies present North Carolina with clear risks – rising prices, labor shortages, and reduced economic stability. However, alternative approaches can safeguard the state’s economy while addressing the broader national concerns these proposals aim to tackle.

Trump’s proposals may appeal to voters seeking bold action, but they lack the nuance and strategic planning necessary to strengthen the U.S. economy. For North Carolina, where industries and families are already navigating higher prices and labor shortages, these policies would deepen economic instability. By pursuing smarter trade deals, comprehensive immigration reform, and equitable tax policies, policymakers can ensure that North Carolina’s economy – and the livelihoods of its residents – remain strong and resilient.

Algenon Cash is a nationally recognized speaker and the managing director of Wharton Gladden & Company, an investment banking firm. Reach him at alc@whartongladden.com.