Trump’s Trade Policies and Global Markets
Uploaded by engineeryousaf on Jan 31, 2019
Trump’s Trade Policies and Global Markets
Since becoming the 45th president of the United States on January 20, 2017, Donald Trump has been very aggressive in his policies regarding trade, terrorism, economic cooperation, conflict resolution, and climate change. Trump’s aggressive approach has been criticized both by national and international analysts. Specifically, the decision of cancellation of nuclear deal with Iran and imposition of tough trade sanctions by the United States was heavily condemned by the European Union and America’s allies. The central focus on Trump’s trade policy is to decrease imports and increase the U.S exports to benefit the local industries and advantage the American business community. For this purpose, the United States has posed heavy tariffs on steel and Aluminum imports from the European Union, China, Canada, and Mexico. Similarly, several news steps have been taken to shield the domestic market from financial crisis and create employment opportunities for the U.S citizens. However, analysts believe that Trump's tariffs have echoed the trade policy of the United States and resulted to the great economic depression. This article presents a comprehensive analysis of Trump’s trade policies and their impact on global markets, and offers useful investment suggestions based on numerical analysis of information collected from the most credible resources.
Historical Background
Donald Trump was elected as the 45th president of the United States on in U.S presidential elections 2016 and assumed his office on January 20, 2017. The central agenda of his election campaign was based on two words: “America First.” Trump believed that all his efforts and life struggle primarily focused on the progress and development of the United States and its people. In his opinion, most of the previous American presidents preferred personal and global interests to those of the United States. For instance, he repeatedly emphasized on renegotiating the America’s relations with China, Mexico, and Pakistan in his campaign. Moreover, he often criticized the U.S free trade and strategic agreements with other nations, such as Trans-Pacific Partnership trade negotiations, NAFTA, the Iran nuclear deal, and the Paris Agreement on climate change. Similarly, Trump’s economic strategy was based on reducing income taxes, declining imports, and increasing the U.S exports to benefit American businessmen and workers. To implement his financial plans, Trump has taken several aggressive steps against the U.S ally and rival countries regarding trade, fiscal cooperation, and economic development. The possible outcomes of an antagonistic trade policy include global loneliness, loss...