Trump Seems Determined to Ruin These Industries in 2018
Every economy has winners and losers. In the past decades, as the natural gas industry boomed, coal became one of those casualties. Despite the government support President Trump offered in 2017, that trend won’t reverse itself anytime soon.
However, elected officials can (and do) have an impact on major industries. We saw it happen to Denver-area ski resorts and Florida theme parks in Trump’s first year in office. When people don’t feel welcome in a country, they don’t go there to spend their vacations — or cash. As a result, many U.S. cities saw declines in tourism revenue.
Trump’s executive actions continued making business harder for some sectors in his second year in the White House. If you work in a job related to one of the industries, your personal income could take a hit. Here are the 10 industries that Trump’s agenda could hurt in 2018.
1. Health care
It didn’t get a lot of play in the media, but GOP tax reform included repealing the Obamacare individual mandate. That move will create more uncertainty in an industry that has seen its share of turmoil since the 2016 election.
Meanwhile, as Trump and the Republican Congress dragged their feet on funding community health centers, 65% of said they had frozen hiring or considered doing so soon. Some 53% said they were pondering layoffs, and nearly 40% said they might close one or more locations.
Tenet Healthcare already confirmed 2,000 layoffs for 2018.
Next: This industry group asked the White House for more tourist-friendly policies.
According to tourism data, 7.4 million fewer foreign visitors came to America in 2017 than did so two years earlier. Industry groups said that amounted to $32 billion in lost income and 40,000 lost jobs.
With fewer international travelers coming to America, that presents a scary situation for restaurant owners in tourist hubs. Early in 2018, the National Restaurant Association joined other groups in asking Congress and Trump to play it smarter on this front (i.e., fewer tweets alienating entire populations).
However, the damage may already be done, and Trump himself has felt the impact. In mid-2017, the popular Asian-themed restaurant inside the Trump Soho Hotel closed because people stopped going.
Next: This booming industry hit the brakes after Trump taxed it.
While tax breaks went out to every corporation in America, Trump decided to slap a 30% tariff on U.S. solar companies that import materials from abroad. Those imports account for the bulk of solar businesses, which largely install and manage energy systems in different states.
As a result, one industry group projected up to 23,000 layoffs in 2018. SunPower, a company based in Northern California, said it would halt a planned expansion (and the jobs that would come with it) following Trump’s decision.
Next: General manufacturing jobs continue disappearing under Trump.
It’s no secret that general manufacturing jobs have been disappearing from America for years. One of Trump’s campaign promises was to reverse that trend, though he didn’t have a concrete plan to do so.
Not surprisingly, manufacturing continues its trend of decline, as we saw in the Harley-Davidson plant closure announced in January 2018. Harley is cutting 800 hundred jobs in Kansas City and opening a plant in Thailand.
Elsewhere, we have not seen a boost in manufacturing expansions since corporate tax cuts got passed by Congress. We’ve seen tens of thousands of layoffs instead.
Next: This arm of the tourism industry also felt the burn of the Trump slump.
The American Hotel & Lodging Association and Asian-American Hotel Owners Association joined the tourism industry groups hoping for better policy from Trump in 2018. Following the steep decline in international visitors, hoteliers and their employees lost a chunk of income from its highest-spending customers.
Actually, if you work at one of Trump’s own hotels, you also might want to consider changing jobs. Declining business forced Trump’s company to cut ties with his branded Soho hotel in December 2017, and a proposed expansion of Scion hotels in Dallas looks unlikely, NPR reported.
Next: If Trump’s Attorney General has his way, the marijuana industry will suffer in 2018.
Jeff Sessions, Trump’s Attorney General, effectively declared war on marijuana –legal and otherwise — in 2018. The industry has been scrambling to define how much it will hurt them.
Glenn Ballman, a cannabis policy expert, told CNBC Sessions’ actions would immediately harm small businesses. “You’ll see labs not reinvest in better equipment for testing. You’ll see producers cut back on expansion plans,” Ballman said.
“And you’ll see processors that are buying equipment to make [edible products] start to cut back as well.”
Next: When airports aren’t packed with foreign visitors, cab volumes and guided tours drop.
There are over 30 members from the transportation industry in the U.S. Travel Association. From limo rentals to Tourcoach Charters and Amtrak trains, this industry thrives on the arrival of foreign tourists. That’s why this group went out their way to lobby Trump for more welcoming policies for tourists.
The same goes for the taxi industry, which has been assaulted by ride-hail companies like Uber in recent years. During any tourist slump, the transportation industry takes a hit, so anyone working in this space should keep an eye out.
Next: This industry depends on tourists from Latin America.
During the winter, ski resorts across America wait for an influx from Latin America, from where tourists seek an escape from the tropical weather. In 2017, the Colorado ski industry was hit hard by a drop in Mexican tourists — for many, a direct message to Trump.
Analysts expected even worse for 2018. If the returns from Brazil continue trending down, income could plummet for ski resorts. According to travel industry data, the U.S. market for Brazilian tourists shrank 25% compared to 2015.
Next: Diplomacy isn’t what it used to be.
9. International relations
The U.S. diplomatic corps used to be one of the country’s crowning achievements. However, things took a sharp turn when Trump entered office. Between a hiring freeze at the State Department and a general hostility to staffing diplomatic positions, anyone who hoped for a career in international relations is currently in a stalled industry.
It might take an international crisis for Congress to pressure Secretary of State Rex Tillerson into filling empty positions at State.
Next: Divisive rhetoric and policies could torch this industry’s revenue, too.
The American Resort Development Association joined the rest of the travel industry in petitioning Congress to get smart on tourism. Certainly, the last thing anyone wants to do on a resort vacation is think about divisive rhetoric from politicians.
As so many tourists from France, Germany, and Australia did in 2017, those who want to avoid unpleasantness will simply choose to spend their money elsewhere. Of course, if Trump’s plan for offshore drilling kicks into gear, coastal resorts will have more to worry about than angry tweets.
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