[By UBS Editorial Team 21 Nov 2024]

How will Trump 2.0 tariffs affect the global economy?

A second Trump administration promises a return to a more assertive, transactional, and isolationist approach to US trade policy. This will likely lead to a further ratcheting up of pressure on China. It is also likely to target other countries running large bilateral trade deficits with the US, deemed to be engaging in unfair trade practices, or shown to be facilitating the transshipment of goods to avoid tariffs.

A second Trump administration has the potential to reshape the economy in various fundamental ways. Based on the above information, please answer the following questions:

3. During a new term, "if" second Trump administration extends portions of the 2017 tax cut that are set to expire in 2025, and implements additional cuts in the corporate tax,

(1) please explain the impact of the above corporate tax cuts on corporations and consumers, respectively; (5%)