Breaking Down Trumponomics 2.0

Donald Trump laid out his economic vision for business leaders at the Economic Club of New York yesterday.Credit…Spencer Platt/Getty Images

Tariffs, taxes … and Musk

In the week when Vice President Kamala Harris started to spell out some of her economic policies, it was Donald Trump’s turn on Thursday to set out his fiscal agenda. It comes as slowdown concerns grow ahead of Friday’s jobs report.

At the center of the proposals, which he outlined at the Economic Club of New York, are higher tariffs, lower taxes and more Elon Musk. Much of these cover familiar ground and again raise as many questions as they sought to answer about how he would govern if re-elected. Still, his remarks could be a prelude to what he’ll be grilled on at next week’s debate with Harris.

Trump sought to draw a sharp contrast with Harris on who would be better for the economy. “I call it America First. This is the policy that built this country, and this is the policy that will save our country,” he told an audience that included JPMorgan Chase’s Jamie Dimon, Blackstone’s Steve Schwarzman and the hedge fund mogul John Paulson.

Trump wants to lower taxes on companies and to rescind much of President Biden’s Inflation Reduction Act, a law popular with many business chiefs. He has also tried to label Harris as a left-wing extremist.

Harris is trying to keep both progressives and her corporate backers on side. For instance, she has signaled she will largely keep Biden’s signature industrial policies but has scaled back the size of a proposed increase in the capital gains tax.

Whoever wins in November will most likely inherit a slowing economy. But experts warn that Trump’s policies could push the U.S. into a trade war that would raise inflation and weaken the economy. Goldman Sachs economists this week said a Harris presidency would be better for growth than a Trump 2.0 would be.