Diya Upreti, Jadetimes Staff
Diya Upreti is a Jadetimes news reporter covering business News
The 2024 U.S. presidential race results are going to have long-term implications on the U.S. and world economies. What has emerged, at the center-most concerns of this election race, is going to determine the direction of the U.S. economy for years to come-its associated issues in trade, immigration policies, taxation, and climates. That is thus going to affect market sentiments around the world.
Trade Policy and U.S.-China Relations
Perhaps the most important economic question the next president of the United States will have to answer is how to navigate trade policy with China. In his first term, Donald Trump made widespread tariffs on Chinese goods the signature piece of his trade policy, claiming this approach would protect American industries and reduce the trade deficit. While tariffs do reduce the amount of trade that occurs between countries, at least in specific sectors, such as electronics, and thus perhaps improve America's bilateral trade balance, they also raise costs for businesses and consumers in the United States. The trade moves to other Asian nations instead of taking it back to the US and there resulted an increase in prices of many goods, which only benefited a few industries.
In addition, the Biden administration has encouraged developing stronger ties with its trading partners by gradually lessening reliance on China through the establishment of domestic industries. A backbone of these efforts is represented in initiatives such as the CHIPS Act, which would increase manufacturing activity within the domestic semiconductor industry. As such, a second term for Biden will definitely propel his administration to further investment in industrial subsidies and partnership-building with allies towards the decrease in China's economic influence.
If a Trump comes to the White House, don't expect a victory parade for free trade and open international markets. Expect another bout of protectionism, more tariffs, and trade restrictions. The two parties say they hear a growing bipartisan unease over China's place in global trade, but it sounds like they have different ways of addressing the issue. The result will be felt immediately in supply chains, in changes in international trade dynamics, and in US-China relationships in the wake of the election.
The Labour Market of the USA: Migration Reform
Another pressing issue that will determine the future of the U.S. economy involves immigration. Immigration is of great importance in terms of population growth as well as workforce development since it accounts for the biggest share of labor force expansion. Technically, immigration will account for nearly all the population growth happening in the United States by 2050; thus, it is a component in the sustainability of economic productivity.
Democrats generally support broad-ranging immigration reform that focuses on border security and also provides ways to legally immigrate. President Biden, therefore, has placed much emphasis on solving labor shortages and integrating immigrants into the workforce as a way to ensure economic growth over the long run. Further, many of the immigration policies of Trump have been rolled back by his administration.
On the other hand, Republicans more broadly-most of them-and Trump more vocally-than most-advocated for stronger border controls and fewer immigrants in the realm of national security and competition for American jobs. In addition, Trump has also further enforced immigration restrictions, which have a ripple effect throughout those industries with a high population of immigrants, such as farming, healthcare, and high-tech industry.
Tax Policy:Corporate Cuts and Fiscal Strategy
Another salient issue is on tax policy, primarily due to the 2017 Tax Cuts and Jobs Act whose fate seems uncertain. Tax cuts are mainly on corporations and the rich. These cuts are set to expire by 2025. In the event that the Republicans end up being majority in the Congress, they would pull all stops to see that these cuts were extended because low taxes boost economic growth since investments, as well as employment, rise.
On the contrary, Democrats would impose larger taxations of the rich and gigantic corporations to finance public programs such as infrastructures, education, and healthcare. This administration under President Biden is a reform-seeking government towards greater income equality between the Americans as the richest one percent pays a more justifiable share of taxes. The next president's tax policy will run alternatively for federal revenue and household income distributions and long-term fiscal sustainability.
Climate Policy and Business Strategy
Climate change is another contentious issue between the two contenders. The Biden administration has taken very progressive steps in keeping up the economy green, back in the Paris Agreement, and enforcing investment in renewable energy, electric vehicles and others. This way, policies may be devised to address climate change, but are also generating employment and developing new lines of business.
The next president will likely reverse many of these decisions, especially regarding deregulation and the growth of traditional energy sectors such as oil and gas. Trump reversed almost every environmental protection he could in his first term; he claimed they stifled business growth. The next president's position on climate policy may well determine the future role of the United States in the global energy marketplace and the competitiveness of American industries.
The impact on the nation's economic landscape from the 2024 U.S. presidential election will be enormous. Whether trade with China, immigration reform, tax policy, or a climate strategy is at issue, decisions in the next four years will determine the direction of U.S. business and its place within the global economy. Both offer starkly different visions for the future. Businesses, investors, and global markets will pay close attention to the outcome of this election.
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