Post-Election Policy Implications and Economic Outlook

In our latest Decision 2024 video, Dominic Ceci, Chief Investment Officer hosts Don Schneider, Deputy Head of U.S. Policy. They provide a comprehensive post-election analysis focusing on the policy implications following the election of Donald Trump as the 47th president of the United States. With the Republicans gaining control of both the Senate and the House, the discussion centers around four main policy areas: tax, trade, immigration, and regulation.

Here are the key highlights:

Tax Policy: Dominic and Don highlight the uncertainty in tax policy, especially with the looming expiration of the 2017 tax reforms in 2026, which could result in significant tax increases. The Republican agenda is to maintain the current tax policies and possibly introduce minor, temporary tax cuts aimed primarily at middle-income earners.

Trade Policy: Trade policies under the Trump administration are expected to focus on increasing tariffs, particularly against China, aiming to lessen U.S. reliance on Chinese supply chains. The possibility of universal tariffs was also discussed, though these are anticipated to encounter substantial legal and political hurdles.

Immigration Policy: Immigration remains a high priority, with Trump planning to bolster border security and tighten the criteria for asylum claims. However, the feasibility of large-scale deportations is questionable due to logistical and financial constraints.

Regulation: Dominic and Don discuss expected deregulation efforts, particularly in the energy sector, which are seen as likely to stimulate economic growth. The Trump administration plans to cut regulatory costs to boost business confidence and overall economic performance.

The overall tone of the policy environment is mixed, with potential growth benefits arising from tax cuts and deregulation but offset by the negative implications of trade and immigration policies. The federal deficit is expected to remain high, with little room for significant expenditure reductions.

Additional Videos

For additional videos that deliver unbiased analysis and insights on the 2024 election and its impact on market dynamics, empowering you to make informed investment decisions.

No matter your goals, our experienced advisors work closely with you to build the right path to success.