Donald Trump elected President
After a seemingly long and difficult campaign Donald Trump has been elected president of the United States with the Republican Party likely retaining control of the House, and probably the Senate, in Congress.
AMP Capital Investor’s Chief Economist Australia, Dr Shane Oliver, has been keeping a close eye on the impact the presidential race has had on global investment markets.
Please click on the link for a summary of Shane’s views: Donald Trump is elected President of the
Trump’s key policies
Taxation: Trump promises significant personal tax cuts including a cut in the top marginal tax rate to 33% from 39%, a cut in the corporate tax rate to 15% from as high as 39% and the removal of estate tax.
Infrastructure: Trump wants to increase infrastructure spending.
Government spending: Trump wants to reduce non-defence discretionary spending by 1% a year (the “penny plan”), but increase spending on defence and veterans.
Budget deficit: Trump’s policies are likely to lead to a higher budget deficit and public debt.
Trade: Trump wants to renegotiate free trade agreements and has proposed various protectionist policies, eg; a 45% tariff on Chinese goods, 35% on Mexican goods.
Regulation: Trump generally wants to reduce industry regulation, which would be good for financials and energy.
Immigration: Trump wants to build a wall with Mexico, deport 11 million illegal immigrants, put a ban on Muslims entering the US and require firms to hire Americans first.
Healthcare: Trump wants to repeal Obamacare and allow the importation of foreign drugs.
Foreign policy: Trump wants to reposition alliances to put “America first” and get allies to pay more, would confront China over the South China Sea and would bomb oil fields under IS control.