President Donald Trump became the 45th President of the United States of America on January 20 2017. A Republican, Trump won the 2016 presidential race with strong economic plans around tax, trade, and national defense.
Since his inauguration, there has been no rest in media coverage of Trump’s political career, from controversial statements, to nationalist politics, and renegotiation of longstanding trade deals. Ultimately, Trump aims to carve out an economic plan which will “make America great again”; promising to reduce US national debt, revive the coal industry as part of an ‘American First’ energy plan, and to create millions of jobs by reducing international outsourcing to China and Mexico.
While the first year of his Presidency has seen a new rise in America’s economy, with US Stocks reaching record highs and unemployed levels shrinking, there is continued economic inequality.
As one of the UK’s leading investment managers, LGIM offers knowledge and experience that can bring real benefit to investors looking to understand American economics and stay informed of Trump’s policy and politics.
Find the latest research on President Donald Trump’s international relationships, such as those being fostered between the US and North Korea, and read about the President’s economic tactics and ambitions.
Our Asset Allocation team includes dedicated and accomplished US economists, whose focus is to assess the macroeconomic environment in America. This includes researching government policy, emerging political trends, as well as the outlook for economic growth and inflation. Our economists then work with our team of strategists and portfolio managers to translate their views into what this means at a portfolio level.
Without adjustment on the home front, we believe that President Donald Trump's push to reduce the trade deficit is unlikely to improve the US trade balance, or boost domestic employment and growth. However, his outspoken approach and questioning of the prevailing trade system may be the very jolt that global trade negotiators need to update their thinking and move ahead with a constantly changing global economy and patterns of trade.
How does the potential trade war look from China’s angle? Although a full-blown trade war between the US and China is not our base case, there is still a lot to consider. The macro impact currently appears to be very manageable, although even if it all blows over, we observe a tectonic shift in the US-Sino relationship.