Globally, protectionist policies could lead to trade wars, fragmented supply chains, and economic uncertainty. Some nations may form alternative trade alliances, while others strengthen regional partnerships to counter U.S. unpredictability
Donald Trump’s return to the presidency has started with bold moves that emphasise protectionism, prioritising American manufacturing, and ‘America First’ policies. His inaugural address signals a shift that resonates with conservative Americans while necessitating a global policy realignment. Countries must recalibrate to navigate the uncertainty arising from Trump’s aggressive approach.
A key focus of Trump’s agenda is revitalizing domestic manufacturing and reducing dependence on imports. This signals a return to trade barriers, disrupting global trade patterns and raising concerns about market stability. While the vision to make America a manufacturing leader is ambitious, it faces challenges, including reliance on advanced industries requiring skilled labor.
Trump’s unilateralism could alienate allies, especially if he reshapes alliances or demands increased financial contributions for multilateral organisations like NATO and the UN. His tougher stance on China may deepen economic decoupling and geopolitical tensions, forcing nations to choose sides and potentially straining global economic growth.
Environmental policy under Trump may also shift, with potential rollbacks on green energy initiatives and climate agreements like the Paris Accord. This could undermine global climate efforts and embolden other nations to deprioritize environmental goals. Stricter immigration controls may disrupt labor markets in technology and healthcare, especially for countries like India and Mexico.
Globally, protectionist policies could lead to trade wars, fragmented supply chains, and economic uncertainty. Some nations may form alternative trade alliances, while others strengthen regional partnerships to counter U.S. unpredictability. Emerging economies could face difficult decisions amid rising polarization.
