Trump has been making new moves recently! He cleverly bundles personal tax cuts with tariffs, attempting to alleviate the price inflation caused by tariffs through tax reductions, and may even implement direct tax exemption policies for certain groups. This tax cut mainly targets individuals with an annual income below $200,000. It is worth mentioning that he has specifically included the upper middle class with annual incomes between $100,000 and $200,000, clearly aiming to win the support of more voters.
Trump's strategy is that since tariffs have led to rising prices, he can ease inflation pressure by allowing the public to have more disposable income through tax cuts. At the same time, high tariffs can force foreign companies to set up factories in the U.S., thereby creating more jobs and lowering the unemployment rate, making economic data look better. If Trump effectively utilizes this combination of policies, U.S. stocks may continue to rise in the short term.
However, this measure can only address immediate concerns. In the long run, whether tax cuts can completely offset the inflation pressure caused by tariffs remains uncertain, ultimately depending on the implementation of the policies and the subsequent performance of economic data. #特朗普税改 $BTC