It's clear that Donald Trump will assume office for his second term as the US President come 20th January following an overwhelming win in the 5th November election. What's not so evident to many expats and high-net-worth individuals (HNWIs) is what his presidency will spell for the next four years. Here, we slice and dice some of the economic policies and changes that he promised on his campaign trail.
Tax cuts and reforms
One of the central planks of Trump's economic agenda is an extension of the tax cuts he signed into law in 2017. He plans to bring back all of these tax reductions and go even further, lowering the corporate tax rate from 21% to 15%.
Trump argues this will spur business investment and job creation, making the US highly competitive from a tax standpoint. However, analysts project his tax plans could add a staggering £5.8 trillion to the national debt over a decade, and he has not specified how he would fund these extensive cuts.
Influence over the Federal Reserve
Trump has been critical of the Federal Reserve's interest rate hikes during his first term, and has suggested he should have more influence over the central bank's decisions. Many economists warn that such interference could undermine the Fed's independence and threaten long-term economic stability.
Deportation and housing affordability
Trump and his running mate J.D. Vance have vowed to carry out the largest deportation programme in American history, claiming this will lower housing prices by reducing competition for scarce homes. However, experts argue there is no clear link between undocumented immigration and housing affordability, and mass deportation could actually disrupt industries and drive up costs.
Protecting Social Security and Medicare
On a positive note, Trump has pledged to safeguard Social Security and Medicare, vowing not to make cuts to these programmes and even proposing to eliminate taxes on Social Security benefits. Yet, analyses suggest his other economic plans could still jeopardise the long-term solvency of these key social insurance schemes.
Student loan policy
While Trump has not revealed specific student loan policies, he has opposed widespread debt forgiveness and has previously proposed cuts to aid programmes.
His administration may seek to roll back initiatives like the Public Service Loan Forgiveness scheme.
Energy and inflation
A cornerstone of Trump's anti-inflation strategy is a pledge to cut energy costs in half within a year, primarily by expanding oil and gas drilling. He believes this could bring down prices across the board, though economists note the president has limited direct control over energy production.
Wrapping up: We are here to help
A second Trump term could usher in a raft of economic changes, from sweeping tax reforms to an aggressive deportation drive. For expats and HNWIs, the implications are mixed - some policies may benefit this group, while others could pose challenges. To understand how a Trump presidency may impact your specific financial situation, speak to the experts at International Wealth Ventures.