Impact of Trump's Economic Policies on World Economies

The assignment discusses the effects of Trump's economic policies on global trade, including the withdrawal from the Trans-Pacific Partnership (TPP) and the renegotiation of trade agreements with European Union and China. It also examines the impact on the foreign countries such as EU or UK or China and concludes that it has had both positive and negative impacts.

PROJECT

Table of Contents
IMPACT OF TRUMP'S ECONOMIC POLICIES ON WORLD ECONOMIES...........................1
REFERENCES................................................................................................................................3

IMPACT OF TRUMP'S ECONOMIC POLICIES ON WORLD
ECONOMIES
U.S. Administration under President Trump has seen a transitional phase where there has
been higher focus given to issues relating to economic improvements. The theme throughout
Trump's Campaign as well as Post-Election has been 'Make America Great Again'. Some of the
Economic Policies taken up by Trump include Protectionism, Immigration Reduction,
Individual and Corporate Tax Reforms among others (Cha, 2016). Here, Protectionism refers
to the practice of shielding one's domestic economic variables from foreign competition that
comes in the form of import taxation. On the other hand, Immigration Reduction is a
movement which promotes the idea of reducing the number of immigrants that are allowed into
the country. Due to such policies the following actions have been taken by Trump during his
course of administration: Withdrawal from Agreements:
Action: It is worthy to note that most of the proposals made by Trump during his Election
Campaign were targeted towards China (Withdrawal from TPP, 2019). For instance, on January
23, 2017, Trump signed an order to withdraw from Trans-Pacific Partnership (TPP) Trade Deal.
This agreement was a key policy that was promoted heavily by Obama during his span of
Presidential Rule. The TPP Agreement included 11 other countries with Japan, Vietnam and
Australia being the main contributors to this deal. This Trade Agreement aimed to lower tariffs
among the member countries.
Reason: One of the reasons spelled out by Trump to back out from this arrangement was
that China had been using this deal as a back-door leading to currency manipulation and higher
chances of unemployment. In addition to this, the U.S. President also asserted to bring trade
cases against People's Republic of China (PRC), thus, challenging its unfair subsidies
subsequently at World Trade Organization (WTO) in pursuant of Section 201 & 301 of the Trace
Act (1974) as well as Section 232 of Trade Expansion Act (1962).
Impact: This impacted the Stocks heavily on Chinese as well as U.S. Corporations that
were in direct contact of each other from financial perspective (Policy Impact on China, 2019).
As far as Currencies are concerned there was an eight year low felt by Chinese Investors after
tariffs were imposed in the U.S. for Chinese Administration. Renegotiation of Trade Agreements with other economies.
1

Action: United States effectively concluded negotiations with European Union (EU) in
regards to Transatlantic Trade and Investment Partnership which seemed to be a comprehensive
and ambitious event for the economy. Conversely, it initiated arrangements for renegotiating
terms after United Kingdom's Brexit in March 2019.
Reason: These were done with a motive to include only those deals that do not tie or bind
U.S. in any manner. Thus, propagating the idea of 'Make America great Again!' effectively.
Another reason for such renegotiations is to rebalance the position of United States in the global
context through up-gradation of flawed deals (Patrick, 2017).
Impact: Implementation of America's image as more reclusive and cautious economy led
to reduction in the role played by the country in various trade agreements. This resulted in
increase in responsibility among other members of EU (Consequences of Trump Administration
on EU-US and China, 2018).
From the above discussion it can be concluded that impact of Trump Administration's
Economic Policies has had both positive as well as negative impact on the foreign countries such
as EU or UK or China.
2

REFERENCES
Books and Journal
Cha, T., 2016. The return of Jacksonianism: The international implications of the Trump
Phenomenon. The Washington Quarterly. 39(4). pp.83-97.
Patrick, S. M., 2017. Trump and World Order: The Return of Self-Help. Foreign Aff.. 96. p.52.
Online
Withdrawal from TPP. 2019. [Online]. Available Through:
<https://www.washingtonpost.com/news/worldviews/wp/2018/04/13/a-timeline-of-
trumps-complicated-relationship-with-the-tpp/?
noredirect=on&utm_term=.e528c404b7f8>
Policy Impact on China. 2019. [Online]. Available Through:
<https://www.fxcm.com/uk/insights/how-trumps-policies-affect-trade-china/>
Consequences of Trump Administration on EU-US and China. 2018. [Online]. Available
Through:
<http://www.europarl.europa.eu/RegData/etudes/STUD/2018/603882/EXPO_STU(2018)603882
_EN.pdf>
3