What Does a Trump Win Mean?

Donald Trump has created history. At first, people thought his presidential nomination was something of a laughing matter. His policies were criticized for being politically incorrect. His quotes were used to make him look like a racist and a bigot. However, somehow Donald Trump struck a strong chord with a huge section of the American population. At the end of the race, he is now, the President-Elect of the United States. Three months away from becoming the most powerful person on the planet.

The President of the United States is in charge of the biggest economy in the world. As such, the decisions are taken by him also impact the entire world. In this article, we will discuss some of the key economic issues that he has been referring to in his campaign. We will try to assess how these policies will affect the American and the global economy.

Low Taxes

President Trump has stated that he would reduce the tax rates of the nation to 15% from the current 35%. This, the opposition believed would benefit only the rich people. It is for this reason that Hillary called this plan “Trumped Up Trickle Down” economics. With President Trump’s election, the tax cuts are now almost imminent. Donald Trump has introduced a plane wherein the higher tax rates will only apply to people making upward of $150000. The low taxes are likely to put more cash in the hands of corporations and individuals. If proper measures are taken, this money could be used to stimulate the economy and do away with fears of a looming recession.

Fiscal Boost

Donald Trump has already announced some mega projects that will be undertaken with the American taxpayer’s money. The border wall surrounding Mexico is a big and ambitious project and will involve a lot of taxpayer spending. In his victory speech also Donald Trump emphasized the topic of inner cities and how he plans to make their infrastructure world class. This would also entail public spending on an unimaginable scale since he stated that America would not settle for anything less than the best. Trump’s immigration plans are also labor intensive. It is going to take a huge workforce to find out and send illegal aliens back to their homeland.

Projects like these are going to create massive employment for the people. The jobs created may not be high end or sophisticated. However, they would still provide employment to less educated American citizens.

Sino-American Relationships

A Trump presidency is likely to have an adverse effect on the Sino-American relationship. Trump is very critical of China dumping all their products in the American markets.

He believes that China is the largest currency manipulator that the world has ever seen. He believes that using this manipulation techniques China has built a massive trade deficit with America. In his speeches, he claimed that this deficit would be cleared aggressively. If America does pursue this policy, the Sino-American relationship is bound to be jeopardized. He is also planning to slap a huge 45% import tariff on goods that originated in China. This is unlikely given the economic reality. However, President Trump plays by his own rules. The world has already seen this.

Mexican American Relationships

Trump’s campaign has been built on bashing Mexicans. From the very beginning, Trump has stated that America is getting a raw deal from the Mexicans. Not only do they illegally intrude into the country and commit crimes but they have also taken away jobs from famed American cities like Detroit under the North American Free Trade Agreement (NAFTA). Donald Trump plans to insource these jobs back to the United States by using a 35% import tariff! This tariff is what will pay for the famed border wall that President Trump has promised to build.

Apparently, the American relationship with Mexico has been jeopardized. However, Donald Trump believes that this is in the best interest of the American people to wreck this relationship. This hostile attitude towards the Mexicans has made the markets delirious, and the peso has hit a new low as its new found enemy just became a lot more formidable.


Donald Trump has been against outsourcing in his policies. This is ironical given the fact that he has himself outsourced many of his businesses to countries like China and India. Donald Trump claims that as a businessman he did what he had and now as a politician, he will do what he has to i.e. to rationalize the outsourcing deals. He is likely to reduce the number of visas and work a permit that is granted to these outsourcing companies thus hitting their bottom lines.

To sum it up, a Trump presidency will not be boring at all. We need to brace ourselves for the barrage of economic changes that Trump has promised to bring along as he is all set to change the status quo.

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