Impact of President Trump's Economic Policy on Foreign Economies

This article examines the impact of President Trump's economic policy on foreign economies such as the UK, EU, and China. It discusses the effects of trading tariffs, trade wars, and other reforms implemented by the President.

Describe and explain how
President Trump's
approach to economic
policy impacts upon foreign
economies such as the UK
or EU or China

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
As the President of the United States of America, Donald Trump has made various
changes to the economic policies of the USA regarding trading, taxation, foreign policy etc.
which have immense impact on the operations and functions of foreign economies such as that of
UK, China etc.
MAIN BODY
There are numerous economic reforms and changes implemented by the President of
USA, Mr Trump after his inauguration as the President of USA, all of which are highly debated
on by analysts and economists, implemented with the intention to strengthen USA’s own
economic prowess and to make American economy independent from the effects of external
forces. The primary economic policy reforms of Trump can be categorised as corporate and
individual tax cuts, efforts to repeal the healthcare system implemented by precious President
Mr. Obama, measures to protect economy from foreign trade, restrictions on the illegal
immigrant’s passage, deregulation of financial and energy sectors to boost their growth etc.
(Drezner, 2019). All of these economic reforms have immense impact on foreign economies
such as that of UK and China who consistently engage in bilateral trade with the US economy.
The main economic change that has immense impact on the productivity and profitability
of foreign economies is that of the increase in trading tariffs levied on all goods and products that
are exported and imported from America to other countries with the intention to put ‘America
First’ (Noland, 2018). Though this approach is profitable for the American economy as it charges
increased tariffs on imported goods from other countries, this has an immense impact on the
profitability of foreign economies who now find it hard to import and export to American
markets on account of the increased tariffs charged, thus making it economically unfeasible.
USA’s withdrawal from the 12 nation Trans-Pacific Partnership under President Trump
also has immense impact on the foreign economies of the 12 member nations as this was a
bilateral trading agreement that would have allowed increased international trade amongst the 12

nations and has impacted the other 11 nations economy as a result of the USA’s withdrawal
which was the largest nation economically.
Under President trump the USA has also entered into a trade war with China, with the
USA imposing severe trading barriers on Chinese imported goods and products and China also
retaliating with its own trading barriers and increased tariffs (Noland, 2018). The situation has
escalated with the trading partners of USA also imposing additional trading barriers and tariffs
on goods and services imported into their countries from China, greatly affecting the Chinese
economy in the future, if things remain as they are now. This has also resulted in the value
decrease of the Yuan in 2019.
CONCLUSION
Based on the findings of the report, the economic changes implemented by the President
of United States of America have immense impact on the operations, functions and profitability
of foreign economies of the world such as that of UK, China etc.

REFERENCES
Books and Journals
Drezner, D.W., 2019. Economic Statecraft in the Age of Trump. The Washington Quarterly.
42(3). pp.7-24.
Noland, M., 2018. US international economic policy in the Trump administration.
Noland, M., 2018. US trade policy in the Trump administration. Asian Economic Policy Review.
13(2). pp.262-278.