The Effect of the Trump Administration on the Global Economy

Meet The Effect of the Trump Administration on the Global Economy and how this can influence our economy and routine.

Certainly, Donald Trump's government, between 2017 and 2021, left a significant impact on the global economy.

His economic, trade, and tax policies have shaped not only the United States but have also influenced international markets, trade relations, and the economic strategies of other nations.

However, the combination of protectionist measures, tax cuts and geopolitical tensions set the tone for his administration and altered global economic dynamics.

Protectionism and Trade War

One of the hallmarks of the Trump administration was the economic protectionism.

The imposition of tariffs on products from several countries, especially China, triggered a trade war that affected the flow of goods and services around the world.

As a result, multinational companies faced higher costs and uncertainty, disrupting global supply chains.

However, industrial sectors in the US, such as steel and aluminum, received incentives.

At the same time, commodity and technology exporting countries have suffered negative economic impacts due to tariff sanctions.

The US-China Relationship

A trade war with China was central to Trump's policy. He imposed billion-dollar tariffs on Chinese goods, alleging unfair trade practices and intellectual property theft.

This certainly resulted in a slowdown in China's economic growth, but it also hurt American exporters such as agricultural producers.

Meanwhile, emerging countries had to deal with exchange rate volatility and the impacts on global demand.

Tax Reforms and Economic Growth in the US

Another prominent policy was the tax reform 2017, which reduced US corporate taxes from 35% to 21%.

Thus, large corporations expanded their investments, and the US economy experienced a short-term surge in growth.

However, this fiscal stimulus increased the public deficit, generating long-term concerns.

Meanwhile, international investors were attracted by the stronger dollar and higher returns in the US, which impacted emerging markets with capital flight.

Monetary Policy and Financial Market

During the Trump administration, the Federal Reserve was pressured to keep interest rates low, which helped sustain a bull market.

This certainly benefited global investors, but it also generated criticism regarding the sustainability of public debt.

Furthermore, tensions between Trump and the Federal Reserve have highlighted the complex relationships between fiscal and monetary policy in the US.

Geopolitics and Energy

The Trump administration's energy policy, focused on increasing oil and natural gas production, has transformed the US into one of the world's largest energy exporters.

Thus, oil-dependent countries such as Venezuela and Iran faced severe economic sanctions.

On the other hand, global energy markets experienced greater volatility, impacting import-dependent economies.

Conclusion

The Trump administration has significantly altered the global economy with its protectionist policies, tax reforms and assertive geopolitical stance.

While some measures have stimulated the US economy in the short term, others have created uncertainty and challenges for the rest of the world.

Certainly, the effects of his administration are still debated, with valuable lessons for the dynamics between politics, economics and global markets.