Four Key Economic Takeaways From Trump’s Inaugural Address | Global News Avenue

In his inaugural address, President Donald Trump laid out four ways he plans to bring the United States and its economy into a “golden age.”

Speaking in the Capitol Rotunda on Monday, Trump laid out the new administration’s “America First” economic agenda, which focuses on fighting inflation, promoting oil drilling instead of green energy, taxing foreign trade and deporting unauthorized immigrants. .

“America’s golden age begins now,” he said. “Starting today, our country will prosper and once again be respected around the world. We will be the envy of every nation and we will never allow ourselves to be taken advantage of again. Every day of the Trump administration, I Will put America first very simply.”

Trump reiterated key economic themes of his presidential campaign and outlined how he plans to pursue them.

foreign trade tariffs

Trump says he will create an ‘IRS’ IRS counterpartwhich would impose tariffs on goods imported from other countries. These responsibilities are currently handled by U.S. Customs and Border Protection, part of the Department of Homeland Security. The new department is likely to be busy because Trump has promised to impose high tariffs on foreign trade, including Mexico, Canada and China.

“We are setting up the External Revenue Service to collect all customs duties, duties and revenues,” he said. “There will be a flood of foreign money pouring into our coffers.”

Many economists say that tariff costs are not external at all because businessmen Import tax costs are often passed on to U.S. consumers. Forecasters predicted Trump’s tariffs will cause inflationwhether he should implement these measures.

Creating a new federal agency requires Congress to pass a law.

fight inflation

Voter anger over inflation during Joe Biden’s presidency was a major factor in Trump’s victory over former Vice President Kamala Harris in November, and Trump said he would use the power of his office to overwhelm inflation.

“I will instruct all members of my Cabinet to use the enormous powers at their disposal to defeat record inflation and rapidly reduce costs and prices,” he said.

As of December, The cost of living has increased Inflation over 12 months, as measured by the Consumer Price Index, was 2.9%, above pre-pandemic levels and the Federal Reserve’s 2% annual inflation target, but well below June 2022’s 9.1% rate, which was the four-decade level. The highest level in years (although not an all-time record).

Promote oil drilling

Trump said lowering energy costs is key to fighting inflation. The price of gasoline, natural gas and electricity is a major factor in household budgets as well as inflation measures such as the Consumer Price Index. Trump says he will issue executive order to boost domestic oil production, reverse course Biden pushes for green energy policy and electric vehicles.

“Today I will also declare a national energy emergency,” he said. “We’ll train, baby, train.”

deport immigrants

Trump said he would issue executive orders on immigration, a major focus of his campaign rhetoric, including deporting immigrants. He said he would declare a national emergency on the southern border, deploy the military to stop illegal immigration and deport those already in the country.

“We’re going to start sending millions of criminal aliens back to where they came from,” he said.

Restricting immigration and deporting immigrants could have far-reaching effects on the economy, especially in industries such as homebuilding, where illegal immigration forms a significant component. a large part of the labor force.