After four days of what seemed like an eternity, U.S. president-elect Joe Biden, the #46th President of the United States of America, will be outlining the transition steps after stepping into the White House. Here’s how his administration might affect major industries in the next four years.
Under Joe Biden’s presidency, the climate and energy plan is one of the most ambitious commitments for a clean energy future and will take a 180-degree pivot from Trump.
As Trump removed U.S. from the Paris Agreement on Nov 4, Joe Biden tweeted:
The U.S. rejoining the Paris Agreement will facilitate financial support for developing countries in their low-carbon transitions.
Biden’s plan captures two core ideas with his Clean Power Plan- the urgency for U.S. to meet the scope of current climate challenges and the inter-connection of our environment and economy. The aggressive plan could potentially enable the world’s largest economy to reach net-zero emissions by the year 2050, alongside his $2.2 trillion plan to de-carbonize the electricity sector by 2035. The likely outcomes include strengthening NATO and increase U.S. relations with Europe on key climate issues.
In transportation, Biden plans on strengthening subsidies to consumers by offering rebates on transition to hybrid, electric, or hydrogen fuel cell cars.
Further, Biden’s win means reliance on his diplomatic channels to affect OPEC and promises a win for the Middle East by supporting crude oil prices and restricting shale production.
Joe Biden’s presidency will breathe a new life to world trade, with potential rejoining in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and reduce sour relations between U.S. and countries like China, Iran, and even Germany.
Biden also aims at increasing the number of high-skilled visas along with H-1B which will be beneficial for immigrants.
Additionally, Biden focuses on avoiding new trade agreements unless major investments are covered in the home country. Through alliances and multilateral institutions, he will aim at the restoration of America’s global leadership. The potential rescinding tariffs on allies with Biden administration will improve longstanding, multinational organizations.
With a new United States Trade Representative to come into power, talks with foreign governments will be reviewed as high priority.
Biden’s administration is expected to be beneficial for Wall Street with incoming stimulus to boost financial markets. While skepticism still lingers in the air, the heightened regulations can steadily come to fruition with substantial power to appoint new financial regulators and improve upon existing policies.
The regulation of Fintech can show impressive room for improvement in the next four years.
While most changes around finance and banking will take a long route in showing results, risk management procedures, capital and liquidity requirements, and other areas will enable regulators to mandate changes. Further potential changes include stricter regulation of the biggest banks, social justice package, higher taxes for Wall Street, implementation of climate transition risk management and further changes to capital requirements.
While the immediate crisis to tackle under Joe Biden’s presidency is the coronavirus pandemic, tech challenges and policies need to be under the administrative lens as well. Biden’s presence over the next four years will have a significant influence on the technology sector.
Apart from the national security issues around China, the second closest would be anti-trust reforms for the big tech companies like Google, Amazon, Apple, and Facebook with skepticism around how far will Biden Justice Department go in terms of anti-trust reforms. The same goes for net-neutrality and law enforcement on online privacy.
Unlike Trump, Biden’s administration is expected to be less stricter towards Chinese technology and policies. Further, partnership with municipal utilities under his rural economic development strategies and investment of $20 billion for better and high-speed broadband access to rural America serves as supporting the middle class.
Biden is also expected to maintain the H-1B visas, beneficial for immigrant talent and skills in the technology industry. This is especially good news for Indians in terms of work-based immigration and temporary visas for high skill, specialty jobs.