One side effect of the Trump administration’s tariffs on imported goods will be a stronger dollar, which will make U.S. exports more expensive and less competitive abroad. Thing is, those tariffs — along with the administration’s approach to foreign policy — may be starting to have another negative effect on the economy: getting foreign investors to think twice about investing in the U.S.
One of the biggest effects of tariffs is that they make an economy more isolated. Teresa Fort, a professor at the Tuck School of Business at Dartmouth College, said trade barriers cut out foreign competitors, so American companies can take their market share.
“Workers and capital are going to move towards sectors that are probably not what the U.S. is best at doing,” Fort said.
In that case, Fort said that companies’ output would slow…
