5 Ways Trump Could Reshape the Economy in His Second Term

Tax Reform

Republicans are poised to move a significant tax cut package within the first 100 days of Trump’s new term. Their plans include making cuts to income tax rates permanent and reducing the corporate income tax rate to 15 percent.

Potential Changes

• Republicans may use reconciliation to alleviate the filibuster.
• Concerns arise regarding the safety of existing tax deductions.

Tariffs

Trump is betting on tariffs to promote American jobs and domestic industry, with planned tariffs ranging from 10 to 20 percent on imports. Critics warn of potential inflation and increased costs for consumers.

Economic Impact

• Tariffs could cost consumers up to $78 billion yearly.
• Concerns about corporate infrastructure adjustments.

Immigration Crackdown

Trump aims to implement significant immigration policy changes, impacting companies reliant on immigrant labor. This includes potential workplace raids targeting undocumented individuals.

Expected Outcomes

• Predicted GDP loss of 4.2% to 6.8% due to deportations.
• Sectors most at risk include construction and hospitality.

Deregulation

Trump’s previous approach to deregulation is expected to lead to more mergers and acquisitions after the Biden administration’s restrictions.

Business Outlook

• Heightened frustration from businesses due to regulatory burdens.
• Concerns about the uncertainty of future regulations.

Retribution Environment

There's apprehension in the business community regarding Trump's threat of retribution against dissenting voices, potentially stymieing corporate engagement in social issues.

Corporate Dynamics

• Business leaders continue to face pressure regarding social and cultural issues.
• Adapting to evolving engagement strategies will prove vital.