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Trump won the election against Kamala Harris by a strong margin, and now many are excited to see how his promises will turn into action. His ambitious plans, like eliminating double taxation on American expats and easing regulations, are a breath of fresh air for Americans—if these get implemented, of course.
Moreover, Elon Musk’s expected appointment as the leader of DOGE (Department of Government Efficiency) has excited and attracted libertarian-leaning voters. He’s even seemed open to the suggestion that Ron Paul could join the team as an advisor!
Would be great to have Ron Paul as part of the Department of Government Efficiency!
— Elon Musk (@elonmusk) November 1, 2024
I’d be lying if I said some of this didn’t excite me as well, and the truth is I’m rooting for the U.S. to become a better place for all my American friends. I want more freedom for people everywhere, and if Trump’s win can help push that along somehow, I am all for it.
But despite this victory, it’s better to remain cautiously optimistic. As of this writing, the stock market is already up in response to Trump’s odds of winning, sparking confidence in his ability to implement some bold economic measures. However, the underlying economic problems of the United States - from crippling federal debt to trillions in unfunded future liabilities - can’t be solved by the wave of a magic wand - and certainly not in a span of four years.
In this article, we’ll look at the implications of Trump’s win, his best (and worst) economic proposals, and why you still want to secure an offshore Plan-B to protect yourself and your family as soon as possible.
Going against free trade, Trump will reignite the trade war with China by raising import tariffs. The message is clear: find American suppliers or pay more
The U.S. has a serious debt problem, with its national debt surpassing $35 trillion dollars. This situation forces American taxpayers to suffer from burdensome taxation and makes high-net-worth individuals get second passports to protect their wealth, as I discussed in a previous article.
Now, Elon Musk’s proposed DOGE would hopefully trim the fat and make the government more efficient by cutting expenses. If things are done correctly, lowering taxes could make financial sense for the country and individuals. There’s just no use in lowering taxes if public debt keeps piling up. Let’s dig into the specifics of Trump’s economic measures:
Fortunately, Trump has promised to carry out many beneficial tax and economic policies to help Americans keep more of their money in their pockets:
Tax-free tips, overtime pay, and social security benefits.
Lower the 21% corporate tax rate to 15% for companies manufacturing their products in the U.S.
Opening federal land available for construction, aiming at making housing more affordable.
Remove the cap on state and local tax (SALT) deductions, currently limited to $10,000 USD.
These policies, paired with a decrease in government spending, could help Americans save more money. However, not all is sunshine and rainbows, as Trump has also discussed ideas that could hurt certain individuals and businesses.
Trump is a protectionist and seems to be bringing back the trade war against China:
Tariffs of up to 20% on imports coming into the U.S.
Tariff of 60% on Chinese imports.
Tariffs over 100% on imported cars, reaching 200% in some instances.
The U.S. dollar devaluation to curb public debt.
Think of all the businesses relying on foreign suppliers, which would be forced to raise prices. The consequences are simple: the cost of many products would increase, some businesses would close due to high operating costs and low profitability, and consumers would pay more. The message is clear: find American suppliers or foot a hefty bill.
Trump’s victory is a surge of optimism even for libertarians like me. Figures like Elon Musk might help tackle issues like excessive public spending and the astronomical national debt. Reducing government overreach and bureaucratic red tape are always positive actions conducive to a freer, more prosperous economy.
Even with the best intentions, implementing such radical reforms faces substantial obstacles. Bureaucratic inertia, political opposition, and the constraints of a four-year term make it difficult to achieve transformative change quickly.
Despite these ambitions, Trump’s supporters must remain grounded in the reality that real reform is a gradual process and that many of these proposed changes may only make incremental progress, if any, during his term. Even if he manages to have a fully Republican Congress on his side, he will likely face more assassination attempts, more lawfare thrown his way via manufactured scandals and impeachment threats, and whatever other bags of tricks the psychopathic globalists will surely throw his way.
Even with the best intentions and plans, Trump faces an uphill battle that will see his opponents in both the media and the political realm throwing everything they can at him to knock him down. While I’m cautiously optimistic and hoping for the best, this will not be an easy road for him.
Numerous clients of mine are cashing out their stock market investments to purchase income-generating properties in countries like Paraguay, Brazil, and Panama
When Trump’s election was made official, Bitcoin reached all-time highs, while the stock market reacted positively to this news in the hope that Trump would be able to carry out lots of business-friendly regulations like lowering taxes and easing regulations.
If your current holdings go up, congratulations. That’s great news, but the stock market will still fluctuate. Sooner or later, your holdings may not retain that same value, especially while inflation continues to rage on. The core conditions that have led much of the world to look away from the dollar remain, and sooner or later, it all has to come crashing down, Trump or no Trump.
I cannot emphasize enough the importance of using this massive opportunity to profit from your stock market’s holdings going up, liquidating, and then taking that money to invest in tangible assets in offshore countries. This situation can be great for speeding up your Plan-B.
Many of my clients are actively liquidating their positions in the stock market to buy income-producing properties in countries like Paraguay, Brazil, or Panama. What’s more, in many countries, your real estate investment makes you eligible for permanent residency or even citizenship, which can provide you with a Plan-B in case things go south in the States.
Amid U.S. debt and global uncertainties, use any economic relief from Trump’s presidency to bolster your Plan-B with offshore assets, property, and alternative residencies
Less regulation, lower taxes and a leaner government are all good news. Trump’s win and the positive market response offer a promising moment, but be skeptical of all politicians, as they rarely fulfill their promises.
But don’t get me wrong, if all these tax cuts become a reality, I’ll be more than happy for Americans. While Americans might face fewer financial burdens in the short term, these are not reason enough to relax. These financial relief and stock market gains are a golden opportunity to invest in your long-term security, just like many of my clients have done.
The U.S. debt, inflation pressures, and the ever-changing geopolitical landscape make vigilance and strategic planning more important than ever before. Instead of relying on Trump to solve all of the United States’ economic problems, you could use any breathing room you do get from a Trump presidency to turbocharge Plan-B: purchase more offshore gold, purchase properties in countries like Panama and Brazil, acquire a second passport or a second residency, and diversify your portfolio across jurisdictions.
These are all practical steps you can take to prepare for any future instability and a recipe to get the peace of mind that your future and your family are secure.
If you want the best intel from the expat world, including profitable offshore opportunities, little-known tax-saving strategies, and hard-won insights on immigration, passports, and Plan-B residencies, all delivered to your inbox every single week, then join our daily correspondence, EMS Pulse™. Currently enjoyed by over 84,000 expats and expat-hopefuls worldwide. Fill in the form below to join our newsletter free:
Written by Mikkel Thorup
Mikkel Thorup is the world’s most sought-after expat consultant. He focuses on helping high-net-worth private clients to legally mitigate tax liabilities, obtain a second residency and citizenship, and assemble a portfolio of foreign investments including international real estate, timber plantations, agricultural land and other hard-money tangible assets. Mikkel is the Founder and CEO at Expat Money®, a private consulting firm started in 2017. He hosts the popular weekly podcast, the Expat Money Show, and wrote the definitive #1-Best Selling book Expat Secrets - How To Pay Zero Taxes, Live Overseas And Make Giant Piles Of Money, and his second book: Expats Guide On Moving To Mexico.
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