(Photo credit: http://bit.ly/2le4T8W)
Donald Trump is constantly making headlines in his first month in office. One thing we’re concerned with is how his new administration will affect the business world. Consequently, here are a few of Trump’s ideas and how they affect business:
Trump Wants To Tax Imports
Trump’s plan to tax foreign imports has been met with mixed reactions from the business industry. For smaller businesses, they see this as a good thing. It means companies have to look inside America for their resources. So, small American suppliers are surely going to experience a boom if foreign imports cost too much. For more established companies that rely on foreign imports, it’s a negative as their stock now costs more to procure. However, the tax paid will go back into the economy which can help provide funding for new startups. It seems like the idea is to keep business in America, which can be both a good and bad thing at this moment in time.
Trump Plans To Reduce Bank Regulations
Since his campaign days, Trump has been actively against the firm regulations fixed on banks in America. In particular, he’s not a fan of the Dodd-Frank ruling and has already started to get rid of it. This ruling was bad for businesses, as it restricted how banks could lend their money to companies.They needed to hold more of their money as cash, which prevented them from investing in businesses and connecting companies with customers. It made it difficult for retail companies to process credit cards too, which was a big issue. As seen on Entrust Bankcard website, accepting cards is essential for retail companies. They could still do it, it was just a lot more difficult than it should be, and many smaller retail businesses opted not to do this. So, by getting rid of the Dodd-Frank ruling, this could mean more money for banks, which means they’re able to invest in smaller businesses and grow the economy.
Trump Wants To Keep Jobs In America
Arguably Trump’s main idea is to keep as many jobs in America as possible. He’s hinted at punishing companies that move their business outside of the country and set up offices or plants on foreign soil. He’s also touched on the idea of relaxing regulations on small businesses, which a lot of small business owners are happy about. The whole aim is to encourage businesses to start their companies on American soil and provide lots of people with new jobs. His vision is to create a country that’s full of American businesses, with American citizens working for these companies. Of course, the idea is definitely a positive from a business standpoint. If he wants to keep jobs and business in America, then he surely has to create the right conditions for this to be possible. This means deregulating small businesses, making it easier for people to start companies.
Generally speaking, Trump wants to be good for businesses in the USA. The big question is, can he really make things better for small companies? He promises a lot, but rarely do his promises come with thought out action plans. So, is he good or bad for business? Only time will tell.