Part 1: What could the economic policy look like under a Republican administration in 2025?

August 21, 2024

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At its convention in July, the Republican party ratified its 2024 policy platform, which seeks to showcase the GOP’s priorities for voters. The platform emphasized many of the policy themes from former President Donald Trump’s 2016 and 2020 campaigns, including trade, deregulation, and immigration. Tom Porcelli, Chief US Economist at PGIM Fixed Income, and James Sonne, Head of Government Affairs at PGIM, update investors on the potential impacts to financial markets and the economy.

Trade

Former President Trump has proposed a 10% tariff on all foreign-made goods as part of his “America First” agenda. When it comes to trade, what other changes might we see under a future Trump administration, and what are the implications for inflation and the economy?

Regulatory Agenda

In his first term, Donald Trump focused on unwinding many of the policies and regulations of the previous administration and would likely follow a similar path if he returns to the White House by rolling back environmental, energy, and financial services rules put in place by the Biden administration. What should investors expect on the regulatory front, and how would Trump’s relationship with the Federal Reserve play out?

Immigration

Immigration has become a central issue in the 2024 presidential race. The Republican platform contains commitments to secure the southern border, and many of Donald Trump’s proposed immigration reforms are likely achievable by executive action. What would it mean for investors and the economy if these policies materialize?

Deficit Reduction

The 2024 GOP platform does not focus on reducing the federal government’s ballooning $35 trillion debt. In fact, neither political party has made deficit reduction a central tenet of their platform. What are the long-term investment risks associated with the debt crisis?

Up Next

Trade Former President Trump has proposed a 10% tariff on all foreign-made goods as part of his “America First” agenda. When it comes to trade, what other changes might we see under a future Trump administration, and what are the implications for inflation and the economy?

Regulatory Agenda In his first term, Donald Trump focused on unwinding many of the policies and regulations of the previous administration and would likely follow a similar path if he returns to the White House by rolling back environmental, energy, and financial services rules put in place by the Biden administration. What should investors expect on the regulatory front, and how would Trump’s relationship with the Federal Reserve play out?

Immigration Immigration has become a central issue in the 2024 presidential race. The Republican platform contains commitments to secure the southern border, and many of Donald Trump’s proposed immigration reforms are likely achievable by executive action. What would it mean for investors and the economy if these policies materialize?

Deficit Reduction The 2024 GOP platform does not focus on reducing the federal government’s ballooning $35 trillion debt. In fact, neither political party has made deficit reduction a central tenet of their platform. What are the long-term investment risks associated with the debt crisis?

Up Next

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