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Climate, Trade, Immigration: Trump's Priorities For His Return To Power  

Wed 06 Nov 2024 ▪ 5 min read ▪ by Mikaia A.
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The American elections are now over: Donald Trump is back in the White House. After a decisive victory, he plans to roll out an ambitious program for the United States, where the economy, energy sovereignty, and immigration management take center stage. Between increases in tariffs, tax cuts, and encouragement of domestic production, Trump wants to redraw the map of international exchanges. His plan in detail.

Donald Trump imitant Moïse et ses tablettes

The elections in the USA: a return of Trump with a protectionist agenda

In light of his 4 Bitcoin promises, Donald Trump also wants to mark his return with protectionist measures. For him, the United States must regain control of their economy by renegotiating trade agreements and reducing their dependence on imports, particularly from China.

Specifically, he proposes to institute tariffs of up to 10% on all foreign products, with spikes reaching 200% for certain cars imported from Mexico. This policy, justified by the desire to reduce the trade deficit, could however lead to increased inflation, a point of concern for many economists.

https://twitter.com/ByronDonalds/status/1842249526696136880

By targeting China, Trump aims to drastically reduce Chinese imports of technological, pharmaceutical, and steel products. Ultimately, he even plans to ban Chinese companies from acquiring strategic assets in the United States.

These measures aim to give competitive advantage back to American companies, while discouraging low-cost imports which, according to Trump, weaken the national economy.

Key points of the trade measures:

  • 10% tariffs on all imports;
  • Tariffs reaching 200% for cars imported from Mexico;
  • Gradual reduction of Chinese imports of technological products;
  • Prohibition for Chinese companies to hold strategic real estate.

Donald Trump: an energy deregulation to reduce bills

On the energy front, Donald Trump advocates increased independence by supporting national oil and gas industries. This return to a liberal energy policy aims to lower energy prices for American households and businesses. He thus intends to double drilling on federal lands, unblock pipelines, and even reintroduce oil drilling in the Arctic National Wildlife Refuge.

In his perspective, more domestic energy means less dependence on imports and therefore, a stronger position against international price fluctuations of energy.

Trump also commits to withdraw the United States from the Paris Climate Agreement, believing that fossil fuel production remains crucial for the country’s competitiveness, particularly in the field of artificial intelligence. His vision is based on a increase in nuclear production to support the energy competitiveness effort.

His detractors, notably environmental advocates, see it as a threat to the energy transition, but Trump insists that it is about ensuring all Americans have access to affordable energy.

Economy: targeted tax cuts to boost purchasing power

Donald Trump is also continuing his crusade for lighter taxation. His first initiative as president will be to maintain the tax cuts from 2017 and consider new reliefs, targeting both individuals and businesses.

The middle classes, according to Trump, will particularly benefit from these measures, thanks to family tax credits and a cap on credit card interest rates.

For businesses, a reduction of the tax rate to 15% is planned, with the hope of encouraging more companies to bring their production back to American soil.

impact-fiscal-plan-trump
Fiscal impact of Donald Trump’s plan – Source: CRFB

However, these promises of tax cuts raise the question of national debt. Economists estimate that such a policy could increase federal debt, a risk that the Trump administration seems ready to take on.

In view of strengthening American competitiveness, the businessman also wants to exempt tips from taxation, a measure that will appeal to workers in the restaurant and hospitality industries.

Finally, Trump’s tax relief plan includes promises of support for caregivers and retirees. For this, he envisions tax credits on auto loan interest and deductions for health expenses related to caring for a loved one, thus reinforcing his image as a defender of American workers and families.

Thus, the return of Donald Trump marks a turning point for the United States: combining protectionism, energy deregulation, and targeted taxation, he hopes to reposition the American economy as a world leader. By supporting Bitcoin, this crypto that he propelled beyond 75,000 dollars during the counting of votes, he could very well push his ambitions into the world of cryptocurrencies.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.