As the US elections approach, questions are mounting about how the economic policy of each of the main candidates will affect… Donald Trump andKamala Harrison the Israeli economy, especially in light of Israel’s increasing dependence on American support during the ongoing war since October 2023.
According to a report in Calcalist, fundamental differences emerge between Trump and Harris’ visions on economic policy, taxes, and global trade, which could have a direct impact on Israeli companies, especially in the technology sector.
Trump’s policies
The report explained that Trump, during his presidency, reduced corporate taxes from 35% to 21% with the aim of encouraging investment in the United States and stimulating the economy.
Although this move helped boost the profits of large corporations, it reduced federal tax revenues and exacerbated social inequality, which may have negative repercussions in the long term.
In the context of stimulating domestic production, Trump imposed Customs duties On imports, especially from China, which affected American companies that rely heavily on imports, due to the high costs of domestic production.
Strategic advisor and economist, Amit Sarosi, explains that this policy affected companies that import materials from abroad, and created a state of uncertainty among countries that depend on exporting to the United States.
Harris insights
On the other hand, Harris adopts an economic vision that relies on raising taxes on the wealthiest segments and large companies, with the aim of reducing economic and social gaps.
Although this step may contribute to achieving a social balance, higher taxes may lead to a reduction in domestic investments and thus to a slowdown in American economic growth.
Harris also calls for the development of a “green economy” based on technology and clean energy, which could open doors to international cooperation and open new global trade opportunities.
The report indicated that this policy may support Israel’s trend towards innovation in the sustainable technology sector, and increase trade cooperation between countries.
The impact of policies on the Israeli economy
From an economic perspective, Trump’s policies may contribute to promoting the growth of Israeli companies with a presence in the United States, especially in the technology sector.
However, Trump’s capitalist orientation may lead to widening social gaps, which may negatively affect the middle class, and weaken the American economy in the long term.
On the other hand, opinions differ within the Jewish community in the United States – according to Calcalist – about these elections, as many of them tend to traditionally support the Democratic Party, but the ongoing political changes in Israel may affect this trend.
The question arises as to whether Harris will continue to support Israel as the Biden administration did, and whether Trump will remain committed to his previous pledges.
The Calcalist report highlights that the final results are uncertain, and that Israel must currently focus its efforts on building a stable government capable of making sustainable economic and security decisions that enhance unity and support the economy.