Trump’s Inauguration: The Wealthy Prepare for a Protectionist Policy

The New York Times has revealed the provisional balance sheet for donations made to Donald Trump for his inauguration on 20 January. The figure stands at an exceptional 200 million dollars, double that of his predecessors. By comparison, in 2021, former President Joe Biden decided to ban contributions from lobbyists. As for Barack Obama, in 2009 he banned extended donations by companies, trade unions, and lobbyists, capping contributions at $50,000 for each individual. This is not the case with Trump, who has imposed no restrictions on either the amount or the identity of donors. Therefore, Private sector tycoons have participated generously, aiming to get closer to the new administration.

Leading the way were tech giants Jeff Bezos, head of Amazon, Mark Zuckerberg of the Meta group - who each contributed a million dollars - and the ubiquitous Elon Musk. We should also mention the generosity of the cryptocurrency sector, to which Donald Trump has promised a rapid deregulation process: according to the NYT, the cryptocurrency company Ripple, headed by Brad Garlinghouse, has donated $5 million to the new president.

Trump's supporters also include French luxury goods giant Bernard Arnault, who attended the inauguration with his family under the Capitol Rotunda in Washington. According to Forbes magazine, the man who is worth 180 billion dollars and represents the fifth largest fortune in the world could nevertheless be penalised by Trump's election, particularly in the spirits market. The increase in customs duties would affect wine and cognac exports, which have already been penalised by Chinese protectionism.

During his first term in office, from 2017 to 2021, the American billionaire had already significantly increased customs duties. Today, Trump has promised to apply even higher rates: at least +10% for all goods entering the US and 60% tariffs on goods from China, the billionaire's great enemy. Tariffs are proving to be the President-elect's favorite tool, particularly for preventing companies from relocating. This autumn, he announced that he would impose 200% tariffs on John Deere imports if the company persisted in its plans to relocate to Mexico.

Tax increases will also affect imported cars to protect American manufacturers such as General Motors and Jeep. According to the consultancy Roland Berger, if China and the European Union take the initiative to sanction the United States' protectionist measures, it could cost the EU economy $533 billion over the next five years, the United States $749 billion, and China $827 billion.

Could Trump's friendly relationship with Bernard Arnault change the American president's mind and make the tariff hikes less severe?