Trump's Return To The White House: Economic Shockwaves Across The Globe
NorthAmerica
Business
Donald Trump was elected as the 47th president of the United States of America in the 2024 US elections and will officially assume office in January 2025. Like Grover Cleveland in 1885-1889, 1893-1897 who served as the US President in non-consecutive terms, he is the second president to be elected back to office after losing in the 2022 Elections to Joe Biden. Donald Trump has cemented a historical comeback into the white house by winning the Electoral College and the popular vote. Donald Trump’s Republican party takes over the Senate and the House of Representatives. This will greatly influence policies from Trump’s led government, which commences in January. His comeback to the White House puts the US in a paradox in domestic policies, global policies, and their influence on the international dynamics in politics and the economy. Donald Trump's policies are geared towards protecting and enhancing the domestic economy of the citizens of the USA. In his previous time in office, most policies focused on protecting the American economy. This led to Trade Wars between the USA and other countries, especially with China which culminated into an increase in tensions between the two countries. This is also expected to take course as he assumes office at the white house. More tariffs are expected on goods and services from other countries, which could greatly impact the global economy due to volatility in financial markets and supply chains. However, the financial markets in cryptocurrencies are set to gain attributed to the pro-stance by Donald Trump during his election campaigns, oiled by the fact that cryptocurrencies were the biggest financiers of Trump in his bid for the presidency. His policies are to stimulate domestic economic growth by including measures of tax cuts in the US. While this is a benefit to the economy, it could also lead to income inequalities, as tax cuts would be much in favor of the wealthy and big corporations. It could also result in federal deficits. His stance on immigration laws could impact the labor market in the US. Immigrants have been poised to be the cause of increased unemployment rates, and an increase in the number of homeless people in the US. The immigration laws in the new administration under Donald Trump will overturn most of the immigration policies made by Biden’s administration. Deportations are expected for undocumented immigrants in the US. However, his immigrant policies will benefit qualified professionals with papers, as the new administration will seek to reignite the labor market with professionals. The anxiety about mass deportation has risen across the Mexican border as more than 3400 individuals are in migrant shelters seeking legal entry into the US by relying on CBP One App. Concerns have also risen within the European powers, as the new administration could undermine the existing efforts in sanctioning Russia due to the war in Ukraine. Trump had stated the need to end the war in Ukraine and the war in Israel. This move could re-establish the business and political relationships between Russia and the US. Donald Trump threatened that the countries that seek to do away with the dollar, will stop doing business with the US. This could derail the advancements of BRICS in the global economy in the use of BRICS's new currency to counter the US Dollar. Investment in climate change is also a concern. In 2017, Trump pulled the US away from the Paris Climate Agreement, making the US the first country to do so. He raised concerns that the policies did not protect workers and American businesses. This is expected to continue as he seeks to protect manufacturing businesses that rely on fossil fuels. As a result, action on climate change is likely to decline on a global scale. Trump’s policies in Africa focus on cuts in aid and donations. This could hamper projects in Africa that greatly rely on aid from the US. African leaders must thus be prepared to tackle issues internally by mobilizing their resources. As Trump’s administration takes office, governments must be prepared to handle their issues, as the new administration has promised to focus on internal issues in the US rather than external ones. His protectionist trade policies, tax cuts, and deregulation efforts are likely to reshape international trade and investment flows immigration. The environmental policies could have significant impacts on labor markets and climate change efforts.
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