Key Takeaways:
– Donald Trump’s staff choices have been made with prospective less resistance on his economic policies in mind.
– This time around, Trump has a larger pool of supporters having government and business knowledge to choose from.
– Howard Lutnick and Scott Bessent have been announced as the Secretary of Commerce and the head of the Treasury Department, respectively.
– Former commerce secretary, Wilbur Ross, shared his thoughts on Trump’s approaches, including the president’s tariff plans.
Trump’s New Staff Configuration
Donald Trump’s revamped team is likely to offer stronger support for his economic policies in his second term. This was confirmed by Wilbur Ross, the former Commerce Secretary. He expressed this at an interview recently discussing Trump’s prospective policies, particularly regarding tariff increases.
Underlined by Ross, Trump’s pool of potential staff is more diverse now. It includes individuals with extensive experience in both government and business spheres. While Ross emphasized that the new team will not necessarily agree blindly with all of Trump’s decisions, he noted less inherent opposition to the president’s views.
In terms of tariff, Ross described a lack of full alignment on ideas such as an overall 10% tariff on imports or a significant 60% tariff on Chinese goods, as suggested by Trump on the campaign trail.
Key Appointments and Their Impact
Post the presidential election, Trump’s appointment choices have caused notable changes in the American administrative landscape. A week ago, he declared Howard Lutnick, his transition team’s co-chair, as the new Commerce Secretary. In addition, he also named billionaire hedge fund manager Scott Bessent to lead the Treasury Department.
Both these appointments are pending Senate approval. But Wall Street’s approval was evident when the Dow Jones Industrial Average hit a record high after the announcement of Bessent.
Trump’s final decision on his trade envoy is still pending. However, he confirmed that Lutnick would directly oversee work at the US Trade Representative’s office.
Reflection on First Term Conflicts
During Trump’s first term, he experienced severe resistance from his top economic adviser, Gary Cohn. Cohn, disagreeing with Trump’s decision to impose high tariffs on imported steel and aluminium, resigned. His successor, Larry Kudlow, was initially less enthusiastic about implementing tariffs compared to others like Robert Lighthizer or Ross himself.
Trump faced further opposition after imposing duties on Chinese goods worth hundreds of billions of dollars. This ushered in a trade war with China, the world’s second largest economy. The move even triggered pushback from Republican ranks in Congress.
Looking Forward To the Next Term
During his next term, Trump will likely face less opposition from congressional Republicans. Ross attributes this to the retirement of several prominent free-trade proponents. Ross also noted an increasing consensus on tariffs within the Republican party and across party lines.
Ross defended Trump’s tariff reforms. He advised against imposing tariffs on a single country, like China, as businesses could simply divert their products through other economies.
Looking ahead, Ross believes that Trump’s future trade policy will be rational with certain exceptions like semiconductors, where US is heavily reliant on other nations.
The equation between other nations and Trump’s policies will steer the journey forward. Ross opines, it largely depends on how other countries react to his approaches. It seems like Trump’s path in his second term might be less rocky than his first, courtesy of his carefully selected staff. These individuals, with their extensive experience and broad perspectives offer great promise to Trump’s ambitious economic plans for the United States.