How Trump’s Plans for Mass Deportations, Tariffs and Fed Could Affect the Economy

Predicting how White House policy is going to affect the American economy is always fraught with uncertainty. Donald J. Trump’s return to the White House has taken the doubt up a notch.

Mr. Trump has proposed or hinted at a range of policies — including drastically higher tariffs, mass deportations, deregulation and a fraught relationship with the Federal Reserve as it sets interest rates — that could shape the economy in complex ways.

“There are two multiplicative sources of uncertainty: One, of course, is what they’re going to do,” said Michael Feroli, the chief U.S. economist at J.P. Morgan. “The other is: Even if you know what they’re going to do, what is it going to mean for the economy?”

What forecasters do know is that America’s economy is solid heading into 2025, with low unemployment, solid wage gains, gradually declining Federal Reserve interest rates, and inflation that has been slowly returning to a normal pace after years of rapid price increases. Factory construction took off under the Biden administration, and those facilities will be slowly opening their doors in the coming years.

But what comes next for growth and for inflation is unclear — especially because when it comes to huge issues like whether or not to assert more control over the Federal Reserve, Mr. Trump is getting different advice from different people in his orbit. Here are some of the crucial wild cards.

Tariffs: Likely Inflationary. How Much Is Unclear.

If economists agree about one thing regarding Mr. Trump’s policies, it is that his tariff proposals could boost prices for consumers and lift inflation. But the range of estimates over how much is wide.