What can the world expect in the economy after Trump's victory?

Following Trump's announcement of his election victory, the economic promises that put the United States in the spotlight during Trump's campaign have come back to the agenda. Trump's statements on issues such as taxes, interest rates, foreign trade, and cryptocurrencies present a clear picture for the upcoming period.

TRUMP'S AGENDA INCLUDES DOMESTIC PRODUCTION

Among Donald Trump's promises, issues such as taxes, inflation, interest rates, trade, and energy stand out. If Trump, the 47th President of the United States, assumes the presidency for a second time, he aims to implement new tariffs, reduce taxes, and increase fossil fuel production. Trump argues that the combination of fair trade, tax cuts, reduced regulations, and energy abundance will enable more goods to be produced better and cheaper in the U.S.

EXPECTATIONS FOR A PARTIAL TAX REDUCTION PREVAIL

Trump, who stands out with his plan to reduce taxes, has promised to eliminate taxes on tips for workers in the service sector.

While Trump wants to permanently extend the provisions of the Tax Cuts and Jobs Act of 2017 that will expire next year, he is calling for additional tax cuts.

According to the current law, individuals receiving social security benefits must pay taxes on 50-85% of their benefits, and low-income retirees pay taxes at a lower rate compared to high-income retirees. Trump aims to eliminate taxes on social security benefits for all individuals. Additionally, Trump plans to reduce the federal corporate tax rate from 21% to 15% if re-elected.

TAX SUPPORT FOR DOMESTIC CARS

Trump, who has promised to allow the interest on vehicle loans to be deducted from taxes, believes this will encourage domestic car production. Trump also promises tax cuts for American citizens living abroad to end double taxation.

TRUMP OPPOSES CLIMATE CRISIS AND CLEAN ENERGY

Trump, who draws attention with his statements denying the climate crisis, states that if he becomes president again, he will cancel the unspent funds under the Biden administration's "Inflation Reduction Act," which is considered the largest step taken so far on climate issues.

Trump, who views the Biden administration's climate change policies as a green new deception, notably supports the fossil fuel industry, including oil, natural gas, and coal.

Opposing most clean energy policies, Trump believes that regulations and international agreements hinder energy production and increase inflation. If re-elected, Trump plans to withdraw the U.S. from the Paris Climate Agreement, just as he did during his presidency.

WILL SHOW A HAWKISH STANCE AGAINST THE AMERICAN CENTRAL BANK

Trump believes that the U.S. president should have a say in the Fed's monetary policy decisions. Trump, who nominated Jerome Powell for the presidency of the bank in November 2017, criticizes Powell for his monetary policy decisions.

ADVOCATES FOR LOWERING INTEREST RATES

Trump argues that there are other ways to reduce inflation without raising interest rates and advocates for a general reduction in interest rates. If re-elected, it is expected that Trump will allow Powell to complete his presidency, which will last until 2026.

SECOND ACT IN THE ECONOMIC WAR AGAINST CHINA?

Known for his "America First" approach, Trump continues to adopt a protectionist stance in trade to support U.S. interests. Trump, who imposed tariffs on products imported from China in 2018 and added customs duties on steel and aluminum imported from other countries, including U.S. allies, signals that he will implement additional tariffs if he assumes the presidency for a second time.

If Trump returns to office, he plans to impose a 60% customs duty on goods from China and a 10% to 20% customs duty on goods imported from other countries.

TENSIONS WITH EUROPE MAY INCREASE

If Donald Trump returns to the White House, there is a risk of increased trade tensions not only with China but also with the European Union (EU). Aluminum and steel tariffs, along with the Digital Services Tax, are highlighted as trade disputes that could reignite with Trump's return to power.

NEW VICTORIES IN CRYPTOCURRENCIES MAY BE SEEN

Trump plans to make the U.S. the crypto capital of the planet and the world's Bitcoin superpower. If elected, Trump states that the U.S. government will hold all the Bitcoin it owns or acquires, which he claims will form the core of a strategic national Bitcoin stock.

Trump argues that the U.S. Securities and Exchange Commission (SEC) has "destroyed Bitcoin" and says he will fire Gary Gensler on his first day in office.