Last week, President Trump delivered his first State of the Union address, which delivered for the first time his major policy plans to Congress. His policies included quite a few key issues for the equipment manufacturing industry.
“Equipment manufacturers are fired up, and ready to grow,” AEM (Association of Equipment Manufacturing) President Dennis Slater said before Trump’s address. “We are hopeful that President Trump’s remarks before Congress will offer a bipartisan roadmap toward renewed prosperity.”
Trump said he plans to ask Congress for a $1 trillion investment in the infrastructure of the US in order to create “millions of new jobs.” However, he was less than forthcoming in how the investment would be funded by mixing public and private monies.
He wants major tax reform for companies, including a corporate tax rate cut and a border-adjustment tax on imports. The details will have to be ironed out by Congress, however. Here’s Trump’s direct quote from the address:
Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone … Currently, when we ship products out of America, many other countries make us pay very high tariffs and taxes. But when foreign companies ship their products into America, we charge them nothing, or almost nothing.
In regards to trade, Trump actively pushed his “America First” agenda for commerce. He didn’t outright say he wanted to impose tariffs, but he wants to look into the NAFTA agreement between the US, Canada, and Mexico.
Trump has been very quick to undo regulations imposed by the Obama era, such as the Waters of the United States rule.
We have undertaken a historic effort to massively reduce job-crushing regulations, creating a deregulation task force inside of every government agency. And we’re imposing a new rule which mandates that for every one new regulation, two old regulations must be eliminated.
Unfortunately, Trump did not mention any policies regarding agriculture issues or rural America.
Check out the full article on AEM for more details on Trump’s speech.