In his second term, Donald Trump’s economic policy is likely to resemble that of his first term, with potential tax cuts, customs duties, and a strict immigration policy. If he wins the upcoming election, the country’s money-rich are supporting him, and Europe could potentially face tariffs that will restrict economic growth. During his first term, Trump’s economic policy focused on tax cuts, protectionism, and aggressive trade policies aimed at boosting employment, increasing wages, and accelerating economic growth.
If re-elected, Trump may continue with tax cuts and stricter immigration policies, which could lead to increased economic activity but also a rise in national debt. One of the significant aspects of Trump’s first term was his trade war against China. If re-elected, he may further tighten tariffs against China or even consider imposing import duties on the EU. However, if elected as president again, Biden has not imposed tariffs against Europe.
Anticipated tax cuts could accelerate economic growth in the short term; however, tariffs and stringent immigration policies could hinder economic growth in the long run. Limits on immigration may restrict labor supply and stimulus policies could lead to inflation prompting the US central bank to raise interest rates slowing down economic development.
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