Trump's Economic Policies: Potential Impacts and Challenges Ahead

President Trump’s economic policies may lead to higher consumer prices and significant impacts on employment and growth.

### Economic Challenges and Strategies Ahead for President Trump
* 🇺🇸 President-elect Donald Trump inherits a **powerful mandate** as he prepares to lead the world's largest economy, with expectations that other countries will start **repaying the U.S. for its global contributions**.
* 💰 Many Americans voted with their wallets in the recent election, reflecting the economic pressures they face, including a **20% increase in consumer prices** since February 2020.
* 📉 The Federal Reserve typically manages price levels, but Trump's potential involvement could politicize the central bank, leading to **higher inflation rates that may harm the U.S. economy while benefiting other nations**.
* 🗳 Trump has proposed significant tax reforms, including potentially leaving **93 million Americans partially exempt from federal income taxes** and replacing income tax with **tariffs**, although such bold ideas may evolve through discussions.
* 💸 The expiration of the 2017 tax cuts in 2025 could prompt Republicans to seek their **expansion**, but funding these cuts might require adjustments, such as **ending tax exemptions or reducing healthcare spending**, risking an **increase in national debt**.
* 📈 Trump aims to boost economic growth through deregulation and tariff policies, targeting a **10 to 20% tariff on imports**, which could **generate revenue** but may also lead to **higher prices for consumers** and **hinder industrial growth**.
* 👷 The proposed mass deportation of undocumented workers could have **severe economic repercussions**, with estimates suggesting that removing this labor force could lead to a **decline in employment and economic growth**, particularly affecting **agriculture and construction sectors**.
* 📊 Overall, while Trump has a range of strategies to implement, the complexity of the economy and the potential consequences of his policies will require **careful navigation to avoid adverse effects on American households and businesses**.

What A U.S. Economy Under Trump Will Look Like

Welcome to the official YouTube channel for CNBC. From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

For real-time news updates from around the world, visit: http://www.cnbc.com

For CNBC's primetime TV lineup, visit http://tv.cnbc.com

For CNBC's International YouTube channel, visit: http://www.youtube.com/cnbcinternational

CNBC

Donald Trump, the President-elect, inherits a powerful economy and has a significant mandate for change.

Consumer prices have risen over 20% since February 2020, and many Americans are experiencing inflation for the first time.

Trump's potential influence on the Federal Reserve's policies could lead to higher inflation and capital outflow from the US, potentially spooking investors.

Trump's Potential Financial Impact and Tax Proposals

Trump may replace Powell as Chair in 2026 and has proposed leaving 93 million Americans partially off the hook for federal income taxes.

His bold ideas, like eliminating the income tax for tariffs, often transform before implementation.

The expiration of Trump's tax cut in 2025 could lead to a shuffle in Congress to pay for expansions, potentially adding to the national debt, while deregulating industries may be another strategy to boost economic growth.

Trump has proposed tariffs of 10 to 20% on imports, aiming to generate revenue and bring industrial jobs back to the U.

However, these tariffs may raise the prices of industrial inputs, making it harder to produce goods domestically and potentially pushing down investment.

The resulting higher prices could have a dramatic impact on households, affecting consumers across different income levels.

The Economic Impact of Deporting Undocumented Workers

The tariff policy is regressive and harms low-income families, while also affecting businesses.

The President-elect's promise to deport undocumented workers could have a significant negative impact on the US economy, with an estimated 8.

Expelling these workers could lead to a decline in employment, economic growth, and a substantial increase in food prices, while also disrupting the housing market.