"All bets are off": From higher tariffs to mass deportations, here's what economists are watching
“The best protection is the democratic process and voting. At this point, changes are coming. However, the chaos of the change does not need to be permanent."
— Gary "Hoov" Hoover, economics professor and executive director of Tulane’s Murphy Institute.
Presidents don't have the ultimate say in how the economy performs. Take a look at the stock market surge that followed Donald Trump's victory and how it has since cooled.
But Trump's plans for the economy — some broad and vague, others more specific — could affect the money Americans make and keep, depending on which strategies are put into action. Some would need approval from Congress, and some — such as interest rates — Trump can't touch, at least not under current law.
Trump will take office in an economy that has strengthened in recent months, with a decline in interest rates, unemployment numbers and inflation. But the potential impact of his proposed hikes in tariffs and mass deportation of undocumented immigrants throws uncertainty into the economy's future.
“I will be interested to see if the president-elect takes a slow and measured response to implementing promised change or a more full-force approach,” said economist Gary “Hoov” Hoover, professor and executive director of Tulane’s Murphy Institute.
“It might be possible to have the largest deportation in American history, but without noting which undocumented workers substantially contribute to the economy, the results could be disastrous. It is rarely the case that political rhetoric lines up with economic realities.”
Most experts agree that if enacted, Trump’s changes could have a chaotic impact on the global economy and spark a rise in inflation and consumer prices, particularly if tariffs rise to the higher range he has suggested — 60% or more on goods from China.
Hoover notes that there are ways Trump might skirt the legislative process to enact his will as he appoints people to leadership positions ranging from health care to the U.S. Treasury.
“The best protection is the democratic process and voting. At this point, changes are coming. However, the chaos of the change does not need to be permanent,” Hoover said.
