If Trump Does Take Back The White House, What Would Be His 2024 Economic Agenda?

At the Republican National Convention, Trump officially became the party's presidential nomination. After the presidential debate and the shooting incident, Trump's chances of winning seem to be increasing, which also makes people pay more and more attention to the policy plan of this Republican candidate.

Notably, the Former President recently talked in detail about his economic policy plan in a communication setting. In this exchange, Trump talked about tax cuts, interest rates, increasing oil exploration, supporting TikTok, and many other heavy content.

"Trump Economics" = Tax Cuts + Low Interest Rates?

At present, there are still many opinions about Trump's policy plan. Wall Street giants such as Goldman Sachs, Morgan Stanley, and Barclays have begun to warn their clients that Trump is expected to implement protectionist trade policies after taking office, which will intensify inflation. At the same time, economic giants such as Nvidia, Qualcomm, and Apple are concerned about the impact of geopolitical conflicts on business stability.

But Trump himself is dismissive of these concerns.

According to Trump, Trump economics is equivalent to low interest rates and low taxes, and he claims that this combination will be a great incentive that can get things done and bring business back to the U.S.

He also said that he would encourage more oil wells to be drilled, reduce regulations; he will relieve the cryptocurrency industry, and curb irresponsible big technology companies. He also promised that if he wins, he will allow Powell to complete his term as Chairman of the Federal Reserve and further reduce corporate tax rates. In addition, he no longer plans to ban TikTok.

He revealed that he would consider letting the Chairman and CEO of JPMorgan Chase, Jamie Dimon, serve as the Secretary of the Treasury.

Six Major Policy Points

At the end of April this year, a proposal draft that was said to be from Trump's team, aimed to severely limit the independence of the Federal Reserve. Considering that Trump has repeatedly attacked Powell before, people generally infer that Trump has supported this proposal.

But Trump clarified in the communication that he has had enough of this unauthorized freelance writing. He complained, There's a lot of false information on that. He is eager to clarify the facts on several issues.

The first is Powell. Trump clearly stated that he would let Powell complete his term, which will last until May 2026.

I would let him serve it out, Trump said, especially if I thought he was doing the right thing.

Even so, Trump still has some ideas about interest rate policy in the short term. He warned that the Federal Reserve should avoid cutting interest rates before the November election, so as not to boost the economy and Biden. However, according to Wall Street's expectations, the Federal Reserve will obviously make the first cut before then.

The second is inflation. Trump does not support the Federal Reserve raising interest rates to suppress prices, so his plan is to open up more oil and natural gas drilling in the United States to lower prices. We have more 'liquid gold' than anyone, he said.

Immigration will also be a key issue. Trump has always believed that strict immigration restrictions are the key to raising wages and employment in the United States. Therefore, he will strictly limit immigration.

Then is the budget deficit. Trump hopes to renew the milestone 2017 Tax Cuts and Jobs Act (expected to cost $4.6 trillion) and further reduce corporate taxes - even though this will obviously increase the fiscal deficit.

In June this year, Trump met privately in Washington with dozens of well-known American CEOs, including Dimon of JPMorgan Chase, Tim Cook of Apple, and Brian Moynihan of Bank of America. He said to these executives at the time that in 2017, he reduced the corporate tax rate from 39% to 21% (in fact, it was reduced from 35% to 21%), and now he plans to further reduce it to 20%.

He added that he also hopes to reduce the tax rate even lower, I would like to get it down to 15.

About TikTok, although Trump claims not to want to harm the interests of American technology companies and advocates that domestic companies are better than foreign companies, TikTok is an exception.

Trump mentioned that if TikTok is banned in the United States, it will only benefit one company and one CEO - that is Facebook and Zuckerberg - and he does not want them to benefit from it.

I'm for TikTok because you need competition. If you don't have TikTok, you have Facebook and Instagram - and that's, you know, that's Zuckerberg. He said.

Trump and Zuckerberg have a long-standing grudge. After the U.S. Congress was attacked on January 6, 2021, Facebook decided to indefinitely ban Trump's account, which still bothers him now. Suddenly, Trump complained, I went from being the boss to being ignored.

Last but not least, Trump also confirmed in the interview that after he took office in the White House, he still intends to raise tariffs on the European Union.

He has repeatedly stated his comprehensive tariff plan before. However, mainstream economists have warned that large-scale tariffs will stimulate further U.S. inflation, which is equivalent to increasing taxes on American families. A report from the Peterson Institute for International Economics estimates that his tariff system will bring an additional cost of $1,700 per year to an average middle-income family.