Submitted by: Veronica Coffin
Trump’s first 200 days are going to really shake things up economically. TPP is already dead, so he won’t even have to mess with that step. Trump also says that he will pull out of, or renegotiate, NAFTA. He’s already started on that front and both Canada and Mexico have agreed to work with him on that. That will be a good thing I think in the long run for the US, but very painful in the short term as prices on food may very well skyrocket. We’ll see.
Trump plans to lower the corporate tax from 35% to 15%, which is a very good idea. That alone will bring business back to the US. He also plans to eliminate regulations… again that will cause business and jobs to boom. So, he has some very good ideas here and his plan is very aggressive. Liberals will hate it, but maybe it will bring some much needed economic relief to this country.
The 200-day plan is built around five main principles, plus an extra plank on manufacturing jobs. First is renegotiating or withdrawing from NAFTA, second is stopping the Trans-Pacific Partnership deal, third is stopping “unfair imports,” fourth is ending “unfair trade practices,” and fifth is pursuing bilateral trade deals. The final focus, to “retain and return manufacturing jobs,” focuses on lowering the business tax rate and eliminating regulations on businesses and restrictions on domestic energy.
The provisions on TPP are almost certainly moot, as congressional leaders on both sides of the aisle say the deal will not come up for ratification in the lame duck congressional session. Trump would then not need to take any action to kill it, because the deal would be effectively dead.
On Day 1, Trump would begin reforming NAFTA, including ordering the Commerce Department and International Trade Commission to begin a study on what the ramifications of withdrawing from the treaty would be, and what would be required legislatively to do so.
The touchy part here is China. Trump wants to go to the negotiating table threatening a 45% tariff on them. That would definitely hurt the Chinese, but remember, tariffs are passed onto us as taxes. They caused the Great Depression, so he will have to step very carefully here. China has threatened if this happens, they will no longer buy from Lockheed. They’ll buy from AirBus. They’ll also stop Apple as a business there. China says they will halt soybean and corn imports as well. Not to mention the fact that they may call our monstrous debt due over the whole affair.
Trump wants to label the Chinese as a currency manipulator. The US is one too… all countries to some extent are. I imagine they will negotiate aggressively and we will see what happens. Hopefully, the US will benefit and not get massively hurt over it.
President Trump wants to force jobs back to the US, which Americans want as well. He will probably utilize selective tariffs on companies to further push them in that direction. Americans should realize, that by doing this, the cost of everything will go up. Now, if wages go up too, it won’t be entirely bad. But it’s going to be a rocky ride. Trump is definitely going to stir things up in regards to our trade policy and hold their feet to the fire.
As president, Trump will have “Trade Promotion Authority,” a power granted by Congress to move trade deals through Congress faster, until 2018. The power could be extended through 2021.