As the 2024 US presidential election draws near, speculation abounds regarding the potential outcomes of the election and their economic ramifications. With Donald Trump set to secure the Republican nomination, attention shifts to the implications of a possible second term for the former president. In this edition of RBI Quarterly, we explore possible outcomes of a
Trump re-election, with a particular focus on economic policies.
One of the key areas of interest lies in fiscal policy, where the Trump administration had pursued an agenda marked by tax cuts and deregulation during its first term. Should Donald Trump secure a second term, the continuation of such policies could significantly shape the nation's economic landscape. We also analyze the future of the Inflation Reduction Act, potential implications of an extension of the Tax Cuts and Jobs Act (TCJA), their impact on federal fiscal sustainability as well as regulatory rollbacks. We will also address global aspects when it comes to discussing trade but won't go into detail on other geopolitical impacts of a second Trump term.
Additionally, trade policy emerges as a critical aspect of the discussion, given Trump's protectionist approach to international trade relations during his first term. Therefore, we will explore the implications of his trade policies on international trade dynamics and the broader global economy.