Experts say the ripple effects of President-elect Donald Trump’s victory are already being felt across the U.S. economy, and his policies could have mixed results. “This is going to be a golden age for America,” Trump said in his victory speech early Wednesday morning, and U.S. stock markets rose following his re-election. “There are two aspects to Wall Street’s recent rally. One is the early conclusion of the presidential election, and the other is investors liking the prospect of deregulation that could help corporate profits. “That’s true,” said Mark Hamrick, senior economic analyst at the firm. But Hamrick said those benefits will likely be uneven, with some industries already bracing for President Trump’s sweeping plan to raise import tariffs, which he said would help expand domestic production. It is said that this will be promoted. Only in America,” President Trump said in a speech at the New York Economic Club in September. Multibillion-dollar shoe company Steve Madden announced Thursday it will cut its sourcing from China by up to 45% next year. President Trump has proposed imposing 60% tariffs on products from China and up to 20% tariffs on other imports. “There is an import rush right now, and companies are now anticipating whether they will have to start raising prices in advance of tariffs.”A Tax Foundation analysis suggests that these price increases could be borne by U.S. consumers. “If universal tariffs were imposed, U.S. households would pay more taxes on average,” Hamrick said. $2,000 a year,” said Erica York, senior economist at the Tax Foundation. The National Retail Federation released another analysis this week assessing how President Trump’s plan would affect six product categories: apparel, toys, furniture, consumer electronics, footwear and travel goods. The study found that the proposed tariffs would reduce the purchasing power of U.S. consumers by $46 billion to $78 billion each time a tariff is implemented. Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, said the fiscal impact of the proposed tariffs could outweigh the savings from Trump-era tax cuts that the president-elect wants to make permanent. said. “For low- and moderate-income households, the benefits from the extension of the Tax Cuts and Jobs Act would be offset by tariffs. For high-income households, the benefits from the extension of the Tax Cuts and Jobs Act would be even greater,” Gleckman said. Deaf,” he said. But for all of them, tariffs would reduce after-tax income. ” During the campaign, Trump also promised tax cuts on tips, overtime and Social Security, which would benefit some taxpayers, but key provisions of the current tax law would add trillions to the national debt. Experts say the number is likely to increase. It was passed during President Trump’s first term and expires in 2025. This is one of the first big battles of the new Congress, and the president-elect’s success will depend in part on the balance of power, as of Saturday morning. Even with a Senate majority in place and a House majority ensuring unified control in Washington, some Republicans may still raise concerns about measures that would widen the budget deficit, experts say. points out. He hopes to enact his plan unilaterally, but given the scope of his proposal, he could face legal challenges.
WASHINGTON —
Experts say the ripple effects of President-elect Donald Trump’s victory are already being felt across the U.S. economy, and his policies could have mixed results.
“This will truly be America’s golden age,” Trump said in his victory speech early Wednesday morning.
The US stock market rose following Trump’s re-election. Investors are betting on what his return to the White House will mean for the economy.
“There are two aspects to the recent Wall Street rally. One is an early resolution to the presidential election, and two is investors liking the prospect of deregulation that could help corporate interests. ,” said Mark Hamrick, senior economic analyst at Bankrate.com.
But Hamrick said the benefits likely won’t be uniform.
Some industries are already preparing for President Trump’s sweeping import tariff hikes, which he says will encourage more domestic production.
“My message is simple: Let’s make products in America and only in America,” President Trump said in a speech at the New York Economic Club in September.
Multibillion-dollar shoe company Steve Madden announced Thursday it will cut its sourcing from China by up to 45% next year.
President Trump has proposed imposing 60% tariffs on imports from China and up to 20% on other imports.
“There’s an import rush right now, and companies are considering whether they need to start raising prices before the tariffs are imposed,” Hamrick said.
The Tax Foundation’s analysis found that these increases are likely to be paid for by U.S. consumers.
“We estimate that if a universal tariff were imposed at 20%, American households would pay an average of $2,000 more per year in taxes,” said Erica York, senior economist at the Tax Foundation.
The National Retail Federation released another analysis this week assessing how President Trump’s plan would affect six product categories: apparel, toys, furniture, consumer electronics, footwear and travel goods. The study found that the proposed tariffs would reduce the purchasing power of U.S. consumers by $46 billion to $78 billion each time a tariff is implemented.
Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, said the fiscal impact of the proposed tariffs could outweigh the savings from Trump-era tax cuts that the president-elect wants to make permanent. said.
“For low- and moderate-income households, the benefits from the extension of the Tax Cuts and Jobs Act would be offset by tariffs. For high-income households, the benefits from the extension of the Tax Cuts and Jobs Act would be even greater,” Gleckman said. Deaf,” he said. But for all of them, tariffs would reduce after-tax income. ”
During his campaign, Trump also promised tax cuts on tips, overtime pay and Social Security. Experts say this would benefit certain groups of taxpayers, but could add trillions of dollars to the national debt.
Key provisions of the current tax law passed during President Trump’s first term expire in 2025. This will be one of the first big battles of the new Congress, and the president-elect’s success will depend in part on the balance of policy. force.
As of Saturday morning, Republicans had secured a majority in the Senate, but the House majority remained at stake.
Even with unified control in Washington, some Republicans could raise concerns about measures that would increase the budget deficit.
Regarding tariffs, experts say that while President Trump has some authority to enact the plan unilaterally, he could face legal challenges given the scope of his proposal.
