Donald Trump's second term could significantly alter the economic policy of the United States. This will primarily impact trade relations, particularly with China.
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SubscribeTrump is expected to focus on tariffs and sanctions to limit imports and safeguard strategically important sectors, such as rare earth metal extraction for microchips, writes the Ministry of Finance.
What to expect from tariffs and trade?
The Trump administration is likely to raise tariffs on Chinese goods again, possibly up to 60%. New import taxes from Europe, such as on cars, are also under consideration. This could lead to price increases in the U.S., while simultaneously encouraging the growth of domestic production. However, universal tariffs could trigger an inflationary spike, as importers pass on the costs to consumers.
Tax cuts and "green" energy.
Trump plans to reduce the corporate tax rate from 21% to 15%, which is intended to support businesses. At the same time, his policy is geared towards the development of traditional energy resources. The president aims to lift restrictions on oil and gas extraction, eliminate subsidies for "green" energy, and simplify the construction of new power plants.
What does this mean for the world?
U.S. decisions could impact global trade and the economy, and cryptocurrency may stimulate certain sectors of the economy.
Is a repeat of the crisis possible?
Trump's inflationary policies raise concerns among analysts. Rising costs and global tensions could pose risks to the economy. Remember the 1980s crisis, when poor decisions led to a recession. We hope history does not repeat itself this time.
Previously, we reported that Alexander Musienko stated that Biden is giving Trump trump cards: "Ukraine is striking back."
This is merely an echo of Trump's old rhetoric, - Alexey Kush on the trade war with the EU – read more on Zna.ua.