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How Trump's return to power will impact global economy, conflicts 

Published : Monday, 11 November, 2024 at 12:00 AM  Count : 337
Arnab Ashraf
Donald Trump has been elected the 47th president of the United States (U.S.) in a stunning political comeback, defeating flamboyant lady Kamala Harris in a highly contentious and polarised election. Trump previously serving presidency (2017-2021) secured key battleground states - such as Wisconsin, Michigan, and Pennsylvania: these had flipped to Biden in 2020. 

Across the entire America, Trump's victory has been marked by a strong showing among traditionally Democratic voter groups, and a Senate now controlled by Republicans. The win solidified Trump's populist, often combative rhetoric, resonating with many voters, mostly men and white evangelical Christians. 

And, his return to the White House follows a tumultuous election cycle also, including two assassination attempts on him. Yet, his second term is expected to focus on reshaping the federal government and seeking retribution against perceived enemies. 

The U.S. has long been a cornerstone of global economic power. But, recent trends indicate its economic leadership increasingly fragile - both domestically and internationally. When the U.S. has plunged into difficult sputtering waves, missing springy cheers, political divisions, rising economic inequality and intensifying global competition, its diminishing economic influence is beginning to reverberate in distant economies-mostly in countries recovering from regional conflict. These countries, once buoyed by U.S. investments, trade partnerships, and foreign policy, are now facing new risks stemming out from the America's shifting economic and the geopolitical stance.

The re-election of Donald Trump to the presidency also marks a potential turning point in the U.S. economic policy. While his first term was defined by divisive trade wars, aggressive foreign policy, and tax reforms, his second term may present an opportunity to recalibrate U.S. strategies to address both domestic and international economic challenges. The global consequences of past decisions, such as trade restrictions and shifting alliances, still resonate, mostly in the vulnerable economies that rely heavily on the U.S. investment and the economic stability.

The U.S. has played a key role in stabilising emerging economies, especially those recovering from conflict or political upheavals. 

Bangladesh has relied heavily on the bout of the U.S. investment, particularly in its garment sector, which accounts for a significant portion of its GDP. Amid the growing instability in the U.S.-China trade relation and the rising U.S. debt, these investments are now at awkward. As American foreign policy priorities shift, countries like Bangladesh that depend on the U.S. trade and capital inflows, are left vulnerable to external economic shocks.

Economies emerging from prolonged political conflicts are especially sensitive to these shifts. The perception of the U.S. as a reliable economic partner is eroding, complicating efforts to secure new investments and maintaining long-term economic stability.


The return of Donald Trump to power equally provides both an opportunity for the U.S. economic revitalisation and a chance to reshaping the inherent global economic relations. His first term was characterized by nationalist policies, trade wars, and withdrawal from international agreements. Now, his second term can present an opportunity for the U.S. to pursue a more balanced and strategic approach to both domestic and foreign policy. It was assumed by independent financial and economic analysts.  
 
Trump's 'America First' platform, which emphasised reducing trade deficit and prioritizing the U.S. industrial strength, was often criticised for undermining international alliances and creating economic uncertainties. For many developing nations that rely on stable U.S. economic relation, the policies of Trump's first term-such as tariffs, immigration restrictions, and isolationist foreign policy-created an unpredictable environment. This uncertainty discouraged investment and strained trade relations.

Despite that, if Trump's second term takes a more nuanced approach, focusing on innovation, sustainable industries, and stronger foreign relations, there is potential for the U.S. to regain its position as a global economic leader. By investing in emerging industries -green energy and technology -- the U.S. can also create new opportunities for the conflict-affected economies.

The U.S. remains a critical consumer market. Its turn inward can have a direct negative impact on many countries' growth trajectories. It is apprehended by political economic analysts. 

In a multi-polar world, the U.S. must streamline critical relationships with global powers, such as China and Russia and India. These relationships will shape the future of the U.S. economic leadership, while casting significant implications on the smaller economies.

China's growing economic and geopolitical power is both a challenge and an opportunity too. During Trump's first term, tensions with China escalated, particularly over trade practices. A stable U.S.-China relationship can benefit smaller economies.

In the meantime, Russia, under President Vladimir Putin, remains a contentious force. While Trump's first term saw allegations of too-close ties with Russia, his second term can present an opportunity to recalibrate the U.S.-Russia relation in a way that mitigates risks to American interests while supporting the global stability. 
And, for economies in conflict zones, a reduction in tensions between the U.S. and Russia is necessary for opening doors for greater regional cooperation and economic developments.

India, as a rapidly growing economic power and a democratic counterweight to China, is another critical partner for the U.S. Strengthening the U.S.-India relations need to offer U.S. businesses access to one of the world's fastest-growing markets while supporting regional stability; for countries in the Indo-Pacific region, stronger U.S.-India ties is likely to lead to new opportunities for trade, investment, and development in this region.

This observation has been made after critical reviewing of data and facts of The New York Times, The Washington Post and Guardian and VoA.  

This is a critical moment for bold leadership, where intellectual rigor, political unity, economic renewal, and social cohesion can appear, in flock, to reshape the future of the U.S. The U.S. has been the victim of global outcry due to miss-handling of the Ukraine War and racial conflicts in Palestine by Israelis. 

This is a moment for leadership that works for all citizens, a leadership that can restore America's standing as a global economic force. According to available findings, in fact, the fragility of the U.S. economic leadership is felt most acutely in smaller, conflict-affected economies.

So, Trump has the chance to revitalise the U.S. economic leadership to restore confidence while providing stability to the vulnerable economies. The path the U.S. takes will determine not only its own future but also the prospects of other nations.

Obviously, if the U.S. can renew its role as a global leader to reduce regional conflicts and tension, the entire world shall stand to benefit. 

This writer is a journalist working with The Daily Observer



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