Summary
Financial markets reacted quickly to Donald Trump’s return to the presidency, with higher share prices, a stronger dollar, and expectations of slower interest rate cuts.
Trump has outlined plans to cut taxes, impose high tariffs, restrict migration, and reduce regulations. Economists warn that his economic policies could hinder growth and drive up consumer prices, while benefiting corporate profits.
Trump’s tariffs, especially a 60% levy on Chinese imports, are expected to strain the eurozone.
Inflationary pressures from his policies may also challenge the Federal Reserve’s efforts to lower interest rates.
I’m scared for the economic future. My job is with a company that needs supplies from China to make our products. Our buyers also source most of their raw materials overseas. Trump’s tariffs will destroy us. We won’t be able to source materials and neither will our buyers. I may lose my job.
Beyond that, I have family members only a couple of years from retirement. This is going to tank their accounts. I need a new car. How will I be able to afford one? Everything is going to go up in cost.
