Factbox-Tariffs, tax cuts key to Trump’s economic pitch to voters By Reuters

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, with most seeing the economy as the biggest campaign issue in the 2024 presidential election.

Several prominent budget forecasters have estimated that Trump’s tax cut plans would add between $3.6 trillion and $6.6 trillion to federal deficits over a decade, depending on the proposals included. The same forecasters show that Harris’ plans to cut spending and taxes would add far less to deficits and possibly even reduce them, with a $400 billion cut over a decade to 1.4 growth trillions of dollars, depending on the proposals included.

Here are the tariff and tax proposals Trump has made so far in his campaign:

IMPORT TARIFFS

Trump has proposed plans for blanket tariffs of 10 percent to 20 percent on nearly all imports, as well as tariffs of 60 percent or more on Chinese goods in an attempt to boost U.S. manufacturing.

On Sept. 23, Trump said he would slap a 200 percent tariff on John Deere (NYSE: ) imports into the United States if the company moves production to Mexico as planned, comments that hurt the farm equipment maker’s share price.

Trump has often said he would hit automakers that move production to Mexico with a 200 percent tariff, but his remarks on Sept. 23 appear to be the first time he has extended that threat to a farm equipment company. The tariffs would likely violate the US-Mexico-Canada trade deal it signed into law in 2020.

During a Sept. 24 speech in Georgia, Trump said he would put 100 percent tariffs on every car that crosses the U.S.-Mexico border. He also said he would reward US manufacturers with research and development 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 opposed to Trump’s proposed tariffs, which economists say would reignite inflation.

A narrow majority of US voters support Trump’s promise to raise tariffs on imported goods, particularly from China, according to a September 11-12 Reuters/Ipsos poll.

TAX REDUCTIONS FOR DOMESTIC MANUFACTURERS

In early September, Trump pledged to cut the corporate tax rate from 21% to 15% for companies that manufacture their products in the US

While he has previously said he wants to cut the corporate tax rate to 15 percent, he has not linked that lower rate to keeping manufacturing domestic.

Trump lowered the corporate tax rate to 21% from 35% during his 2017-2021 presidency.

TAX-FREE FOR PAY FOR OVERTIME, OVERTIME OR SOCIAL SECURITY INCOME

Trump said on Sept. 12 that if elected, he would end all taxes on overtime pay as part of a broader tax cut package.

Trump also said he would seek legislation to end the tax on tips. Harris made a similar commitment. Current law requires employees to report their tips as income.

Trump also promised to exempt Social Security income from taxes.

EXTENSION OF TAX REDUCTION

Trump wants to extend all of the individual tax cuts he pushed through Congress in 2017, including for the wealthiest Americans, which tax and budget experts estimate would reduce revenue over a decade by about $3.3 trillion by to 4 trillion dollars.

UNCLEAR PROPOSAL REGARDING THE “SALT” DEDUCTION.

In a Sept. 17 Truth Social post, Trump promised to “cut the 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 re-elected. Trump’s 2017 tax cuts put a $10,000 cap on the amount of state and local taxes taxpayers can deduct. It was unclear 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 and tariff cuts, Trump has promised to support the oil and gas industry by supporting new pipelines and restoring fracking on federal land in a bid to boost the economy. On Sept. 24, he said he would put the Alaska National Arctic Refuge — where the Biden administration has canceled oil and gas drilling leases — “on the line” if he wins the election.

He also said he would consider ending a $7,500 tax credit for electric vehicle purchases. While president, Trump tried to repeal the electric vehicle tax credit, which was later extended by President Joe Biden in 2022.

During a Sept. 18 campaign rally in New York, Trump pledged to put a temporary cap on credit card interest rates at “about 10 percent.”