"Any move by the United States to withdraw from NAFTA or to otherwise restrict automotive vehicle parts and components trade within North America will result in higher costs to producers, lower returns for investors, fewer choices for consumers, and a less competitive U.S. automotive and supplier industry," according to new research from the nonprofit Center for Automotive Research in Ann Arbor, Mich. (The report was funded by the Alliance of Automobile Manufacturers, a trade group.)
The Brookings Institute put it even more bluntly: "Trump strongly believes that protectionism is what will protect the American workers. He is wrong," wrote Dany Bahar, a fellow in the Global Economy and Development program of the nonprofit public policy research group.
Both reports make similar arguments: protectionist actions by the U.S. would trigger a trade war, which would drive up prices and hurt American consumers by reducing their purchasing power. Demand would fall, and companies would need fewer workers.