President Donald Trump on Trade, Taxes and Protectionism. Treasurers get to work!
President Donald Trump on Trade, Taxes and Protectionism
“We’ve made other countries rich while the wealth, strength and confidence of our country has dissipated … One by one, the factories shuttered and left our shores … millions of American workers that were left behind. The wealth of our middle class has been ripped from their homes and then redistributed all across the world.” During his inauguration, Donald Trump summarised his views on how globalisation and open trade policies have made America worser off.
“From this day forward, it’s going to be only America first. America first. Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families.” President Trump, once again, stressing his America first policy.
“America will start winning again…We will bring back our jobs…our borders…our wealth. And we will bring back our dreams…We will follow two simple rules: buy American and hire American.” Trump outlining the fundamentals of his America first policy.
Treasurers get to work!
Like it or not, this is the POTUS (acronym for President of the United States) Mr Donald Trump who will be leading America from 2017 onwards. He made it a point to buttress his opinion on world trade and globalisation by signing an executive order to withdraw USA from the negotiating process of the TPP (Trans-Pacific Partnership). How will this impact economies, businesses and Treasurers?
How will business leaders react to President Trump’s offer to cut regulations by 75% and promises to cut taxes for businesses down to anywhere from 15% to 20%? Will we start seeing businesses moving their operations and money back to USA?
How about the taxes on those who do not comply with the America first policy? Will President Trump impose a major border tax on goods manufactured abroad and sold in the USA? How should we plan for the increased tax and what will be the impacts on Treasury, Finance and Accounting? Like most people, I do not have a clear answer now and I am looking to other countries and governments for clues. Sadly, clarity and wisdom seems to be a rare commodity of late. From Singapore to Japan to Germany, it appears that nobody have a good understanding of what is to come from the Trump administration.
“We are going to make America great again. And I’ll add, greater than ever before!” Trump repeats his America first policy during the eve of his inauguration. From his speech, the only thing that we are pretty sure of, is there will be change and lotsa change!