Australia Corp Supports Biden’s $369B Inflation Act Amid Trump’s Resurgence
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The article discusses potential effects of a hypothetical second term of Donald Trump’s presidency on the U.S business landscape. Business leaders have mixed views, with some expecting a fall in regulatory burdens and taxes but potential harm to supply chains due to tariffs and trade wars. Regardless of the administration in power, most believe that the energy transition will continue due to the immense capital required, and that political change does not significantly impact market trends.
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Trump’s stance on EVs debated by Aussie business leaders
Though, Trump has voiced his disinterest in EVs, business experts like Zip Co and HBF Health chairman Diane Smith-Gander, believe the transition in Europe would keep the IRA intact. According to Smith-Gander, the IRA has indeed bridged the gap between the US and Europe in terms of energy transition.
Trump administration’s impact on business
Smith-Gander, also the chairman of economic think-tank CEDA, indicates mixed responses towards a second tenure of Trump. She predicts a decline in regulatory burdens and taxes but warns about potential overseas tariffs and trade wars. The business leaders view the Trump administration with anticipation, despite concerns about his immigration policies.
With indications of Trump contesting against Biden in the coming elections, and Biden’s approval rating dropping to 40%, according to a recent YouGov poll, the market is rife with speculations.
Trump’s approach to fossil fuels
ASX-listed fund manager Auctus’ managing director Campbell McComb shares that Trump is expected to maintain the IRA, despite his pro-oil stance. He believes that good business opportunities will arise regardless of the election outcome.
David Neal, IFM Investors boss, considers infrastructure as a resilient asset class and anticipates policy continuity due to the necessity of capital for the clean energy transition in the US.
Impact on free speech and investment
Chris Hulls, CEO of social networking app Life360, expects a pullback on diversity, environmental, and governance issues under Trump. However, he does not anticipate any direct policy changes impacting his business and suggests that any possible civil unrest might be beneficial for Life360.
AustralianSuper’s chief investment officer Mark Delaney downplays the political impact of another Trump tenure, predicting adherence to traditional Republican pro-business policies like tax cuts.
AusSuper CEO Paul Schroder reveals that the possibility of a Trump victory hasn’t significantly affected his firm’s decision making process. He credits the strong performance of Wall Street during Trump’s first term to his ability to streamline bureaucracy.
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