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The biggest economic risk from Donald Trump’s presidency is a loss of confidence in US governance

EXPERT COMMENT

Trump’s economic policies may prove surprisingly benign in the short term. But steps that undermine domestic US institutions and international alliances would do serious and lasting damage.

President-elect Donald Trump’s radical economic policy platform has gathered huge attention. But the big long-term dangers to the US economy lie in other steps he has outlined that would undermine the quality of US policymaking and call into question America’s reliability as an ally.

Ahead of the election Trump promised action in five main economic policy areas. He pledged tax cuts resulting in a stimulus of up to $8–10 trillion, to impose 10–20 per cent tariffs against all US trading partners and 60 per cent against China, to deport up to 11 million undocumented migrants, to unleash a wave of economic deregulation and to reform radically the federal bureaucracy, improving efficiency and cutting ‘enormous amounts’ of waste. He also promised to roll back the Biden administration’s pro-climate policies, to end the war in Ukraine and to double down on efforts to constrain China’s access to US technology.

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Channel website: https://www.chathamhouse.org/

Original article link: https://www.chathamhouse.org/2025/01/biggest-economic-risk-donald-trumps-presidency-loss-confidence-us-governance

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