Prior to the big day on Friday 20 January, Trump had provided his staff with a list of twenty-five things he wanted to achieve on day-one. The list was later revised to cover four key areas, as outlined below.

Trump’s Day 1 To Do List:

1. Initiate the removal of illegal immigrants – Trump promised to do this within one hour of taking office.

2. Order a renegotiation of the North American Free Trade Agreement. Already it’s been announced that the US has formally pulled out of the Trans-Pacific Partnership (TPP), which will directly affect Australia as one of 12 countries involved.

3. Eliminate “job killing restrictions” on shale energy and clean coal.

4. “Drain the swamp:” Order restrictions on the appointment of lobbyists.

Since the election in November the Australian share market has appreciated more than seven per cent, global markets have rallied in a similar vein.

This positive movement supports the view that Trump’s policies could boost the US economy, and that he will put aside some of his more extreme campaign positions.

Summary of Trump’s policy initiatives:

• Taxation: Trump promises significant personal tax cuts including a cut in the top marginal tax rate, a cut in the corporate tax rate to 15 per cent and removal of estate tax.
   
• Infrastructure: Trump has plans to increase infrastructure spending in a bid to spur growth in the US economy.
   
• Government spending: Trump wants to reduce non-defence discretionary spending, but increase spending on defence and veterans.
   
• Trade: Trump proposes protectionist policies, e.g. a 45 per cent tariff on Chinese goods and 35 per cent on Mexican goods. It is unsure how this policy will play out; it could significantly affect the Chinese economy which in turn could have a knock-on effect to the Australian economy.

If anything, the next four years will be an interesting period; as business man, turned reality TV star, turned US President puts his own stamp on world affairs.

The information provided above is general information only and individuals should seek specialised advice from a qualified financial adviser. Please contact Hewison Private Wealth for more information.