In a bid to return to the White House, former US President Donald Trump has outlined an economic agenda that includes imposing more rigorous trade and tax policies, particularly targeting countries such as India and Brazil. This proposal has raised concerns within the US business community about potential retaliatory actions.
Trump’s economic plans for a potential second term center around extending and deepening the Republican tax cuts introduced in 2017, rolling back regulations implemented by President Joe Biden, and introducing additional tariffs. If countries like India or Brazil were found to be imposing higher tariffs on American goods, Trump’s strategy involves reciprocating with equally stringent levies.
These measures are consistent with Trump’s first-term trade approach, marked by confrontations with China through a series of tit-for-tat tariffs. While Biden has continued to apply pressure on China, Trump’s new proposals are causing anxiety among economists and business leaders. Many view higher tariffs as a form of taxation on American consumers and businesses, which could lead to inflation, harm US manufacturing, and trigger retaliatory actions from other countries.
Despite criticisms, Trump remains committed to negotiation and has not finalized specific economic policies. His campaign intends to release more details in the coming months, focusing on the general election message against Biden.
Trump may use additional tariff revenues to extend tax cuts introduced in 2017, such as immediate expensing of machinery and equipment, and other cuts set to expire soon.
Although Trump did not specify exact numbers for potential tax cuts or tariff targets during recent discussions, his approach has stirred concern within the American business community. They fear that a return to the Oval Office could lead to an escalation of such policies, potentially sparking trade conflicts with various countries.
As the 2024 presidential race unfolds, these economic proposals are sure to be a focal point of debate and discussion.