What becomes of CHIPS Act, economy, Ukraine under Trump? (Editorial Board Opinion)

American voters last week gave Donald Trump a second term in the White House. There is no reason to believe it will be any less chaotic or unpredictable than his first term.
Trump has said a lot of things about what he will do. Will he follow through? Here are some questions and expectations to consider as we prepare for the next four years.
Will the CHIPS Act survive?
This is the $100 billion question for Central New York.
Micron Technology’s plan to build four semiconductor chip fabs in the town of Clay hinges on federal subsidies contained in the bipartisan CHIPS and Science Act, passed in 2022. Micron is working on environmental studies required under federal and state law, meaning construction won’t start until a year from now, at the soonest. A Trump administration, if intent on depriving Sen. Chuck Schumer and President Joe Biden of a win in a blue state, could delay it even longer or change the tax code to remove some benefits.
Trump showed his cards, sort of, in an interview with podcaster Joe Rogan the week before the election. “That chip deal is so bad,” Trump said. “We put up billions of dollars for rich companies.”
Speaker of the House Mike Johnson, campaigning in Central New York for now-outgoing Rep. Brandon Williams, said the quiet part out loud. Johnson told reporters House Republicans would “probably” repeal the CHIPS Act if they retain their majority and Trump is in the White House. Williams jumped in to clean up Johnson’s mess, and the speaker later walked back his statement, but the seeds of doubt were planted.
Gov. Kathy Hochul, who pushed through state subsidies to bring the Micron deal over the finish line, rightly used her bully pulpit Wednesday to call on Trump to support the project. Other state, county and local officials, business leaders and Micron itself, should follow her lead and keep the pressure on the new administration to keep it on track.
What will Trump’s tariffs do to the economy?
For the second time, Trump inherits an excellent economy — even if voters don’t believe it. Inflation is under 3% and growth is at or near 3%. Unemployment hovers around 4%. Trump promised tax cuts to everyone and their uncle. Despite Trump claiming that he would balance the federal budget, the deficits in Trump’s first term were astronomical. Republicans already will control the Senate; if they keep a majority in the House, will there be any fiscally conservative Republicans left willing to hold the line on the deficit?
The president-elect campaigned on a program of levying 20% tariffs on all imported goods and 60% tariffs on goods from China. The goal, he said, is to force U.S. companies to bring manufacturing back to the United States. Industries that operate on thin margins and rely on cheap foreign labor to produce goods didn’t bring production back under the first Trump tariff regime, and they won’t this time. Tariffs will be passed on to U.S. consumers in the form of higher prices, sending inflation higher again. And when consumers balk at higher prices, manufacturers will look for savings elsewhere … and the layoffs will begin.
What will be the fate of Ukraine?
Trump and Republicans in Congress (including vice president-elect JD Vance) are openly skeptical of sending more U.S. military aid to help Ukraine defend itself against Russia’s aggression, even though most of that money goes to U.S. manufacturers of materiel. Trump boasted he could end the war in 24 hours — before he’s even inaugurated on Jan. 20. Without any details to go on, supporters of Kyiv fear that means ceding Ukrainian territory to Russia. Rewarding Vladimir Putin’s unlawful invasion would have consequences for the rest of Europe if it can’t hold the line without U.S. support. Ukraine President Volodymyr Zelenskyy congratulated Trump and praised his “decisive leadership.” And we know from his dealings with Putin that Trump is susceptible to flattery.
After four years in office and four years campaigning to regain it, we know how Trump rolls. Buckle up.
Editorials represent the collective opinion of the Advance Media New York editorial board. Our opinions are independent of news coverage. Read our mission statement. Members of the editorial board are Tim Kennedy, Trish LaMonte and Marie Morelli.
To respond to this editorial: Submit a letter or commentary to [email protected]. Read our submission guidelines.
If you have questions about the Opinions & Editorials section, contact Marie Morelli, editorial/opinion lead, at [email protected]