However, I would argue that Trump will probably mitigate the effect by loosening regulations so that it's simply easier to start a new business in the US
For what it is worth, he has already signaled going down that route. Not only has he talked about cutting down regulations in general, he also has said he has such ideas as a significant corporate tax cut if and only if the factory set up is in the US. Which would arguably benefit smaller startups or regional/national builders over multinationals, since they will by default be entirely US based.
That's what I expect. It's basically a Whig or Chicago School move of using tariffs to build economic power. I don't like it from an Austrian position, but if you play both sides of the equation, the math works out. Then you're supposed to get off it, but people rarely do (certainly the Whigs never did).
For what it is worth, he has already signaled going down that route. Not only has he talked about cutting down regulations in general, he also has said he has such ideas as a significant corporate tax cut if and only if the factory set up is in the US. Which would arguably benefit smaller startups or regional/national builders over multinationals, since they will by default be entirely US based.
That's what I expect. It's basically a Whig or Chicago School move of using tariffs to build economic power. I don't like it from an Austrian position, but if you play both sides of the equation, the math works out. Then you're supposed to get off it, but people rarely do (certainly the Whigs never did).