Donald Trump came out victorious in last year’s presidential election. Now, he is going to begin his journey – second time – as President of the United States of America. On January 20, 2025, he will take charge. We could see big changes in the U.S. and worldwide economy. Experts say specific changes may boost the economy, while others may hurt it. This article examines Trump’s economic policies – trade, tax, regulatory, and other policies with pros and cons. So, give it a read if you want to know how Trump’s leadership could impact America in the coming days!
Tax and Trade Policies
Donald Trump wants to continue the 2017 Tax Cuts Act to support wealthy individuals and large corporations. He also plans to reduce the tax percentage for local companies manufacturing products in America.
In terms of trade, he plans to introduce new tariffs (importing products from other countries), in which he emphasizes a reduction in imports for the sake of protectionism and wants to implement almost a 60% tax on goods from China and a 10% tax on all imports from other countries.
Positive Impacts:
- A tax reduction would be beneficial for rich people to invest more and for large companies to multiply their production.
- Preferring local production industries could reduce imports and the inflation rate.
- Promotion of local products could increase sales and ultimately strengthen the U.S. economy.
Negative Impacts:
- Favoring only wealthy people and big companies could create a sense of inequality among American people.
- There is a risk of “crony capitalism“, where the large corporations with strong ties to the government would get special treatment and fewer regulations.
- Retaliatory tariffs from other countries, especially China, could hurt global trade and raise consumer prices.
- It could harm businesses in the United States that rely on export markets.
Regulatory and Deregulatory Policies
Trump supports digital currencies and wants to see a large amount of investment in this growing industry. He intends to remove regulations for cryptocurrencies to make it easier for investors. He also plans to replace anti-crypto politicians who regulate this industry.
If we talk about his approach towards the energy sector, after taking charge, he plans to remove restrictions on traditional energy sectors like oil and gas. He wants to slow the growth of renewable energy by canceling unused funds from the Inflation Reduction Act.
Trump aims to lower regulations in the tech industry. He also seeks changes to the Affordable Care Act to alter healthcare costs and access.
Positive Impacts:
- Boosting the growth of the cryptocurrency market would attract more investors.
- Encouraging production in the oil, gas, and coal sectors would create job chances in traditional energy industries.
- Fewer regulatory barriers for the tech industry would promote innovation.
- Changes in the healthcare sector would benefit pharmaceutical companies with fewer regulations.
Negative Impacts:
- There could be fraud and instability risks due to less regulation in the crypto industry.
- Slowing down the progress of renewable energy industries could affect long-term sustainability and create environmental challenges.
- We could experience higher risks in the tech industry, such as data privacy and supply chain issues.
- Healthcare changes might limit access for some individuals and increase costs for others.
Labor Market and Immigration
Trump plans stricter immigration enforcement, which could reduce the number of workers available in industries that depend on immigrant labor. This is aimed at protecting jobs for American workers and controlling population growth through immigration.
Positive Impacts:
- May increase wages in industries with reduced labor supply.
- Encourages businesses to invest in automation and efficiency.
Negative Impacts:
- Shrinks the workforce in key sectors, potentially slowing economic growth.
- This leads to higher costs for businesses reliant on immigrant labor, potentially increasing consumer prices.
- Contributes to inflation due to wage increases in affected industries.
Conclusion
Donald Trump’s policies could benefit certain industries. On the other hand, they could create problems like higher inflation, inequality issues among Americans, and disrupted global trade. To see how successful these policies are will depend on how the Federal Reserve manages economic pressures and how the administration handles relationships with other countries.
