WASHINGTON: Donald Trump’s pick for Treasury Secretary Scott Besant faces a steep climb. Once they assume power, they will have to face two conflicting factors. On the one hand, they have to follow the economic vision of their leader Donald Trump, on the other, they have to find a way out of the country’s debt crisis, which has almost reached the gross domestic product (GDP). United States.
The first challenge for successful hedge fund manager Scott Besant will be how to implement economic protectionist policy while avoiding a global trade war. On the other hand, Donald Trump has already said that he will impose at least 10 percent import tax on all imported goods and will impose a much higher import tax on China (possibly 60 percent). It is also possible that other countries, especially China, may take equally drastic measures against it, leading to a trade war. It remains to be seen how China reacts to this. Saying this, EY Chief Economist Gregory Deco said that Trump’s Treasury Secretary (Finance Minister) will have to create a trade policy in which America’s trading partners should be negotiated with to avoid damage to the country’s economy and also ensure that Make sure that inflation does not increase.
On the other hand, inflation is likely to increase if the Trump administration raises the debt ceiling and has to pay outstanding bills.
In fact, the debt-ceiling authority (authorized by Congress) expires in January. At that time, the outgoing finance minister will have to make every possible effort to ensure that the country does not default. Along with this, tax cuts also need to be considered. Because now America’s public debt is 28.6 trillion dollars. Which has reached close to its Gross Domestic Product (GDP) and is growing uncontrollably.
Under these circumstances, Donald Trump’s new Treasury Secretary has a tough climb indeed. On one hand, increase in import tax increases the prices of goods and increases inflation. On the other hand, trade-food will also have to be reduced and thus a balance will have to be struck between the two. Along with solving the economic mess, some issues like reduction in internal taxation and increase in import tax, both these issues will have to be taken up immediately by the new Finance Minister.
