Donald Trump won the 2024 election. Here’s what’s next on two important economic topics.

American voters have elected Donald Trump as the next President of the United States, handing him a comfortable victory over Vice President Kamala Harris.

An Associated Press call Wednesday morning in the state of Wisconsin in favor of Trump exaggerated it as Trump will now receive the distinction of being the 45th and 47th U.S. presidents.

“This was, in my opinion, the greatest political movement of all time,” he told his supporters early Wednesday morning as he neared victory. “And now it will reach a new level of importance.”

The former president was buoyed by strong male support and a strong voter focus on inflation, evident in nearly every poll in the years since consumer inflation peaked at an annual rate of 9.1% in June 2022.

“America has given us an unprecedented and powerful mandate,” Trump also said Wednesday, pointing to his victory in the Electoral College and his lead in the popular vote Wednesday morning.

Inflation has moderated in recent years, but remains the focus of voters’ attention. Trump was able to use this to win Joe Biden’s voters back to his side and attract new voters to the polls who had not been present in previous elections.

“We are going to transform our country,” he promised voters at his final rally late Monday night in Grand Rapids, Michigan. “I will end inflation very quickly.”

It was a refrain he repeated at nearly every campaign stop, including Wednesday morning, when his podium read: “Trump will do it.”

Trump’s key campaign promises – a new wave of tariffs and a “mass deportation” of undocumented immigrants – could put new upward pressure on prices, many economists say.

A note from Capital Economics late Tuesday evening highlighted some of the macroeconomic concerns. The authors wrote that they expected Trump to move forward with his proposed immigration restrictions and tariffs, and that we therefore “intend to reduce our GDP growth forecast … by approximately 1% and increase our inflation forecast by 1% over the same period.” increase.” .”

Trump remained unimpressed during the campaign and promised to impose new blanket tariffs against Mexico during a visit to North Carolina on the final day of the campaign.

“You’re the first people I told,” Trump told a crowd in Raleigh. “Congratulations, North Carolina.”

In addition to his promises of tariffs on Mexico, Trump has also promised things like 60% tariffs on China and 20% tariffs on America’s other trading partners.

A Goldman Sachs analysis estimates that a Trump victory would hit U.S. GDP growth by -0.5 percentage points, largely due to “tariffs impacting growth.”

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While economists may be skeptical, voters were clearly not in favor as a whole, as Trump led the Tar Heel State by a significant margin and found new levels of support compared to his previous presidential runs in 2016 and 2020.

Trump will also immediately find himself at the center of a fierce tax debate that will rock Washington in 2025 over whether to extend the tax cuts that Trump himself signed into law in 2017.

What Trump has promised is a full expansion of cuts for individuals of all income levels, along with a dizzying array of additional promises, from exemptions from tips and overtime taxes to tax cuts for large corporations.

All told, a full Trump tax agenda will have a price tag of about $9 trillion over the next decade, according to the Center for a Responsible Federal Budget (CRFB). And he outlined some concrete ways to pay for it all.

But how far he can get there depends largely on Congress, where Republicans have taken control of the Senate but control of the U.S. House of Representatives is still unclear.

Trump is also expected to play a leading role on a variety of issues, from choosing the next Federal Reserve chair (perhaps the only certainty is that Jerome Powell will not be nominated for a third term) to energy (where Trump may nominate becomes). Attempt to reduce green energy subsidies).

Ben Werschkul is a Washington correspondent for Yahoo Finance.

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