US President Donald Trump did not waste his time on his first day in the office, as he heads for an abrupt turn of the country’s economic politics.
Trump began his first full week as US president by meeting with the top leaders of some of America’s largest corporations, including Tesla, Ford and Whirlpool, and leaders of a number unions. According to The White House, the purposes of the meetings were to listen to various representatives of the business sector.
The meetings signified that the time for large, multinational trade deals are over, as Trump withdrew the country from the Trans Pacific Partnership (TPP), a trade agreement that comprises twelve nations across the Pacific Rim, including Mexico and Canada.
The TTP trade agreement was a cornerstone of Obama’s policy. There is a growing opposition against broad, international trade agreements in the US, particularly amongst Republicans, also Bernie Sanders and Hillary Clinton have said that they were against TPP.
White House spokesman Sean Spicer says that Trump will prioritise trade agreements with individual countries, with the UK being one of these countries. This foreshadows a shift in the way US engage in trade across its borders.
Trump also announced that he pledges to cut taxes and regulation ‘massively’. He estimates that the taxes will go down anywhere between 15 to 20 percent, and says that he wants to reduce regulations with 75 percent.
It remains unclear however how the government will compensate for the loss of income.
There has been a common consensus amongst Republicans that the government expenditure needs cutting, but once the negotiations as to what sectors to cut from, it becomes difficult.
Whereas Trump has promised not to touch the pension program Social Security, many Republicans wants or reform or privatise the program.
Among the institutions that should expect to be amputated are US public broadcasting, art and culture facilities, and legal aid to the poor.
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