As President-elect Donald Trump is preparing to take office for a second time, former Treasury Secretary Steven Mnuchin recently assessed the main economic agenda likely to shape the incoming administration. Mnuchin who served as a Treasury Secretary under Trump from 2017 to 2021, pointed out tax cuts, tariffs, and sanctions as key components of Trump’s policy.
Mnuchin emphasized that tax cuts, a key component of President Trump’s first term, will continue to be a central focus of his agenda in the years ahead. “Tax cuts are a signature element of his program,” Mnuchin stated in a recent interview. He was certain that such initiatives would be popular amongst the legislators, especially if the Republicans continue to occupy the current House, which seems probable.
Furthermore, tariffs will also be a fascinating area to study, a policy that Trump has advocated for a long time especially with regards to China. According to Mnuchin, tariffs will still form part of the negotiations with other players in global trade add that China did not completely honor its end of the deal in trade bargains it made in Trump’s first term. “Tariff diplomacy is necessary in coaxing the other party back to negotiations, China in particular,” he explained.
He also pointed out that sanctions against nations such as Iran and Russia may also be back on the table. In the first year of Trump’s presidency, the administration imposed severe restrictions upon the export of oil from Iran, banning oil exports connected to the Islamic Revolutionary Guard Corps in particular. It was reiterated by Mnuchin that sanctions targeting both these countries, particularly those on energy exports, would be reintroduced. “The sanctions on Iran and Russia were very impactful,” he emphasized. More specifically, he added that there is a need for a limitation of the Iranian oil sales, which have been resumed rather recently.
In terms of wearing Mnuchin’s interest, he did not express any intention of rejoining the administration in any official capacity, but said he was happy to serve from the outside. He went on to state that the national deficit was another issue that the incoming administration will have to deal with. This implied that in his second term as president, Trump could make attempts to cut back on the government’s expenditures, given the increasing national debt.
Mnuchin who started Liberty Strategic Capital after his spell in the Treasury has remained a significant player in the financial and policymaking circles after leaving the government.