On Monday, Eastern Time, at the National Republican Convention in the USA, Trump officially became the presidential candidate. After experiencing a televised debate and last Saturday's shooting incident, Trump's chances of winning appear to be increasing. This has also made people pay more attention to the policies of this Republican candidate.

Recently, President Trump detailed his economic policies in a communication. During the exchange, Trump talked about tax cuts, interest rates, increased petroleum extraction, and support for TikTok, among other heavyweight topics.

Trump economics = tax cuts + low interest rates?

Regarding Trump's policy plans, there are still divergent opinions from the outside world. Wall Street giants such as Goldman Sachs, Morgan Stanley, and Barclays have already begun warning clients that Trump is expected to pursue protectionist trade policies, which will exacerbate inflation. At the same time, economic giants such as Nvidia, Qualcomm, and Apple are concerned about the potential impact of geopolitical conflicts on business stability.

But Trump himself dismisses these concerns.

"Trump economics is equivalent to low interest rates and low taxes... This is a tremendous boost that can get things done and bring business back to our country," said Trump.

He further indicated that he would encourage more oil well drilling, reduce regulations, release pressure on the cryptos industry, and curb irresponsible big tech companies. He also promised to allow Powell to complete his term as chairman of the Federal Reserve if he wins, and to further reduce corporate tax rates. In addition, he no longer plans to ban TikTok.

He revealed that he would consider having Jamie Dimon, Chairman and CEO of JPMorgan Chase, serve as Secretary of the Treasury.

Six key policies:

At the end of April this year, The Wall Street Journal reported on a proposal, allegedly from the Trump team, that aims to significantly limit the independence of the Fed. Given that Trump had previously attacked Powell many times, it was widely assumed that he supported the proposal.

But Trump made it clear during the communication that he was fed up with such unauthorized free writing. He complained: "There is a lot of false information." He urgently wanted to clarify the facts on some issues.

First, on Powell. Trump made it clear that he would let Powell finish his term until May 2026.

"I will let him stay the course," said Trump, "especially if I feel that he has done the right thing."

Even so, Trump still has some thoughts on interest rate policies, at least in the short term. He warned that the Fed should avoid lowering interest rates before the November election to avoid boosting the economy and Biden. However, according to the expectations of Wall Street, the Fed will clearly cut interest rates before then.

Second, inflation. Trump doesn't support the Fed's raising of interest rates to suppress prices, so his plan is to lower prices by opening up more oil and gas drilling in the U.S. "We have more 'liquid gold' than anyone," he said.

Third, immigration. Trump has always believed that strict restrictions on immigration are the key to higher U.S. wages and employment. Therefore, he will strictly limit immigration.

Fourth, the budget deficit. Trump hopes to renew the milestone 2017 Tax Cuts and Jobs Act (estimated to cost $4.6 trillion) and further reduce corporate taxes—although this will clearly further increase the fiscal deficit.

In June of this year, Trump privately met with dozens of well-known American CEOs in Washington, including Jamie Dimon of JPMorgan Chase, Tim Cook of Apple and Brian Moynihan of Bank of America. At the time, he told these executives that in 2017, he reduced the corporate tax rate "from 39% to 21%" (actually from 35% to 21%), and now he plans to further reduce it to 20%."

He added that he hopes to reduce the rate even further, saying,"I hope it goes down to 15%."

The fifth point is about TikTok. Although Trump claims that he does not want to harm the interests of American technology companies, and advocates that domestic companies are better than foreign companies, TikTok is an exception.

Trump mentioned that if TikTok is banned in the United States, it will only benefit one company and one CEO - that is, Facebook and Zuckerberg - and he does not want them to benefit from it.

"Now I'm thinking about this issue, I support TikTok, because you need competition," he said, "If there is no TikTok, there is only Facebook and Instagram - you know, that's Zuckerberg." He won't tolerate such a result.

Trump and Zuckerberg have some grievances. After the January 6, 2021 attack on the US Congress, Facebook decided to indefinitely ban Trump's account, which still bothers him now. "Suddenly," Trump complained, "I went from being the boss to being ignored."

The sixth point is about tariffs. Trump confirmed in the interview that he also plans to increase tariffs on the European Union after taking office.

He has expressed the comprehensive tariff plan many times before. However, mainstream economists have warned that large-scale tariffs will stimulate further US inflation, equivalent to increasing taxes on American families. A report from the Peterson Institute for International Economics estimates that his tariff system will bring an additional cost of $1,700 per year to middle-income families.

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