Just as markets had recovered from the crash caused by the global trade war, the financial world is shaken again by an economic plan from US President Trump. Doubts are growing daily about the massive US debt, now at $36 trillion, while the House of Representatives has approved the largest tax cuts ever.
Trump's enthusiasm for his Big Beautiful Bill contrasts sharply with Wall Street's concerns. Even Trump's allies, like JPMorgan Chase CEO Jamie Dimon, question whether the tax cuts are sustainable given the colossal debt. Dimon warned of potential stagflation—a stagnant economy with rising prices.
The US debt per citizen is already exceptionally high, around $100,000 per American, compared to €28,000 per Dutch citizen. Trust in the US is wavering due to Trump's foreign and domestic policies, including pressure on independent institutions like the central bank.
Credit rating agency Moody's downgraded the US, citing reduced tax revenues from the bill. A severe crisis could ripple globally, affecting Dutch exporters and financial stability, though buffers are stronger post-2008.