Di Dongsheng, Professor of International Relations at Renmin University of China, described by The China Academy as “one of the most influential Chinese political economists,” has laid out a probable scenario of the impact of a Trump victory in the U.S. Presidential election on Nov. 5. Trump’s main economic policy is tax cuts: He could not implement it fully in his previous presidency because he had a hostile Congress. If he is elected he will push it further, Di wrote in a July 5 article on “Thinkers Forum” website of The China Academy.
If Trump again has a hostile Congress, he will be forced to find the money somewhere to finance his tax cuts, and he will probably repeat what he did in his first mandate, i.e. introduce import tariffs (China, but not only China). If Congress supports him, he will put pressure on the Federal Reserve Chairman Jerome Powell to cut interest rates and/or will replace him with somebody more compliant.