By Helen Coster
NEW YORK (Reuters) – Republican presidential candidate Donald Trump has made tariffs and tax cuts key elements of his economic pitch to voters, most of whom see the economy as the top campaign issue for the 2024 presidential election.
Several prominent budget analysts have estimated that Trump’s tax cut plans would add between $3.6 trillion and $6.6 trillion to the federal deficit over a decade, depending on which proposals are included. The same analysts show that Harris’s spending and tax cut plans would add far less to the deficit and possibly reduce it, ranging from a $400 billion reduction over a decade to a $1.4 trillion increase, depending on which proposals are included.
These are the tariff and tax proposals that Trump has made so far in his campaign:
IMPORT TARIFFS
Trump has proposed blanket tariffs of 10% to 20% on virtually all imports, as well as tariffs of 60% or more on goods from China, in an attempt to boost U.S. manufacturing.
On Sept. 23, Trump said he would slap a 200% tariff on John Deere (NYSE:) imports into the United States if the company moved production to Mexico as planned, comments that hurt the farm equipment maker’s stock price.
Trump has frequently said he would impose a 200% tariff on automakers that move production to Mexico, but his Sept. 23 comments appear to be the first time he has extended that threat to a farm equipment company. The tariffs would likely violate the U.S.-Mexico-Canada Trade Agreement he signed in 2020.
During a speech in Georgia on September 24, Trump said he would impose 100% tariffs on all cars crossing the US-Mexico border. He also said he would reward US-based manufacturers with R&D tax credits.
The National Retail Federation, which represents Walmart (NYSE:) and other companies that account for nearly half of container shipping volume, is among industry groups opposing Trump’s proposed tariffs, which economists say would reignite inflation.
A narrow majority of American voters support Trump’s campaign promise to raise tariffs on imported goods, particularly those from China, according to a Reuters/Ipsos poll from September 11-12.
TAX REDUCTIONS FOR NATIONAL PRODUCERS
In early September, Trump pledged to cut the corporate tax rate from 21% to 15% for companies that manufacture their products in the United States.
While he had previously said he wanted to cut the corporate tax rate to 15%, he had not tied that lower rate to keeping manufacturing within the country.
Trump reduced the corporate tax rate from 35% to 21% during his presidency (2017-2021).
NO TAXES ON OVERTIME PAY, TIPS OR SOCIAL SECURITY INCOME
Trump said on Sept. 12 that if elected he would eliminate all taxes on overtime pay as part of a broader package of tax cuts.
Trump has also said he will pursue legislation to end tip taxes. Harris has made a similar promise. Current law requires employees to report their tips as income.
Trump has also promised to exempt Social Security income from taxes.
EXPAND TAX CUTS
Trump wants to extend all of the individual tax cuts he pushed through Congress in 2017, including those for the wealthiest Americans, which tax and budget experts estimate would reduce revenues by between $3.3 trillion and $4 trillion over a decade.
UNCLEAR PROPOSAL ON SALT DEDUCTION
In a Sept. 17 post on Truth Social, Trump promised to “bring back SALT,” a reference to the state and local tax (SALT) deduction available to federal taxpayers. At a rally the next day, Trump said he would “restore the SALT deduction” if reelected. Trump’s 2017 tax cuts imposed a $10,000 cap on the amount of state and local taxes taxpayers can deduct. It was not clear whether Trump was suggesting he would eliminate the $10,000 cap, which predominantly affects high-tax, Democratic-leaning states like New York.
OTHER ECONOMIC PROPOSALS
Beyond tax cuts and tariffs, Trump has promised to support the oil and gas industry by backing new pipelines and reinstating fracking on federal lands in an attempt to boost the economy. On Sept. 24, he said he would put Alaska’s Arctic National Wildlife Refuge, where the Biden administration canceled oil and gas drilling contracts, back into play if he wins the election.
He has also said he would consider ending a $7,500 tax credit for the purchase of electric vehicles. During his presidency, Trump attempted to repeal the EV tax credit, which was later expanded by President Joe Biden in 2022.
During a campaign rally on September 18 in New York, Trump promised to temporarily cap credit card interest rates at “about 10%.”