Year 2025 is a year of epoch changing; out with the old and in with the new. There will be two prominent changes. One is on the explosion of AI, another is on the Inauguration of Donald Trump. We will talk about the changes brought by Donald Trump today.
Trump is going to levy tariff on both enemies and friends so as to make America Great Again. Please, please take care on his attitude before and after the election. People worry over his tariff would lead to inflation, and of course his cabinet had also advised him of this. So how he tackles it. See his changes before and after the election. During the election campaign he only emphasized he would levy 60% tariff on China, without mentioning Canada and Mexico. After his victory, he said he would levy 25% tariff on Canada and Mexico, and China 10%. So what’s the next step? Europe and UK will come second, half a year later will increase the tariff of China gradually to 60%. Japan, South Korea and Taiwan which are the Chip-4 will come later. Thus will give time for digesting the effect of tariff so as to control inflation. Thus will let the producer have more time to shift their production line to merging economies. In May, Trump said he would bomb Beijing if they attack Taiwan, but when election drew near, he changed his saying that he would levy 200% tariff on China if they attack Taiwan so as to catch more votes. Anyway, Tariff is still the major policy and he would use the income to cut the corporate tax from 21% to 15%. In 2017 he had already cut if from 35% to 21%. So it’s a means of controlling inflation and we must view from all sides and not just on tariff.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.
About the Author
Daniel Yue has been an active investor since 1980, with experience spanning stocks, currencies, futures, metals, and bonds. A scholar of the Chicago School of Economics, he holds a Certificate with Distinction from Cambridge University and a degree in International Trading from National Taiwan University. He served as Chief Analyst for over 30 years and Chief Mentor at Sincere Finance. In 2017, he received an award from the University of Arizona for financial internship leadership.
The analysis and opinions expressed in this article are for educational purposes only and do not constitute financial advice. Investing involves risk. Please consult a qualified financial advisor before making investment decisions.