On Wednesday morning, Republican candidate Donald Trump was chosen the 47th president of the United States.
Wall Street is “rejoicing” Trump's triumph, per NPRand is facilitated by a “quick and indisputable election result”, according to USA Today.
The Dow Jones Industrial Average rose more than 3% Wednesday morning, and the Nasdaq and S&P 500 rose 1.5% each, hitting record high.
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How a second Trump presidency could affect small business
Shye Gilad, professor of management practice at Georgetown's McDonough School of Business, said The entrepreneur in an emailed statement that the election result “significantly” affects small businesses.
The Trump administration has proposed lowering the corporate tax rate from 21% to 15%.
“Under a Trump administration, the emphasis may be more on cutting taxes, deregulating industries and implementing protectionist trade policies,” Gilad said.
Donald Trump. Photo by Chip Somodevilla/Getty Images
On trade, Trump proposed 10% to 20% tariffs on all imports and 60% to 100% tariffs on imports from China. declaring that the policies would create new jobs and help American manufacturing industry. The National Retail Federation estimates that the tariffs would cost consumers 78 billion dollars a year.
“While small business owners may welcome Trump's corporate tax rate cut, his protectionist trade approach and pledge to eliminate the ACA could present costly, systemic problems that could outweigh the tax benefit,” Gilad wrote.
However, Bill Newlands, CEO of Constellation Brands, a beer company known for its Modelo, Corona and Pacifico brands, minimized concerns for higher rates in a recent interview.
“We already had four years of a Trump administration and our business was in double digits during that time period,” he DECLARING.
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