Before his official inauguration, he was concerned about Trump implementing his economic threats

As his inauguration approaches, many in America and the world are concerned after US President-elect Donald Trump launched a torrent of economic threats from tariffs on allies as well as adversaries and a threat to deport 11 million illegal immigrants, which raises a major question: how will “Trump economics” affect… Global economy? Will it strengthen or undermine the dollar’s ​​dominance?, according to what the Indian newspaper The Front reported.

Trump’s threats before the inauguration

Trump’s threats come with a wave of appointments to more than 4,000 positions loyal to him, more than during his first term, when the Republican Party establishment was stronger, which led observers to say that Trump in his second term will be more free to implement his threats.
The factor that will determine the actions and fate of the Trump administration are the capitalists who supported and financed him. They are not satisfied with decades of neoliberalism, but rather want more tax cuts and deregulation in the interest of amplifying their wealth.
The limits of American power
There are three defining factors. First, there is an increasing emphasis by the “global majority” (the Russian description of the majority of the world’s countries that do not agree with Western sanctions imposed on their countries) on trade, finance, and the global role of the dollar, and this emphasis benefits greatly from the new importance that China has acquired. For example, today China has become the most important trading partner for an overwhelming majority of the world’s countries.
Second, as should be clear from the cost to Germany of the United States displacing China as its most important trading partner after 2022, even the allied governments that Biden claimed to be alone with the United States in the “alliance of democracies” are finding that the cost of accepting American leadership is high. Electorally expensive.
The third factor is the decline in the economic weight of the United States in the global economy.
Read also: How does Donald Trump’s return to the White House affect the global economy?

Consequences of Trump’s policies

According to Professor Radhika Desai, Professor of International Development at the London School of Economics, these factors will “sabotage any Trump policy initiative and either turn into mere token gestures, fail, or worse, accelerate the decline of the United States as a global power and productive economy.”
Desai emphasized that the tariffs that Trump will impose represent a political play because they will not revive manufacturing and jobs in the United States, as he claims, because only industrial policy will do that and it is the policy that forces American companies to invest productively and innovatively.

High inflation under Trump

Desai also believes that imposing tariffs would increase inflation, which forced the Federal Reserve to keep interest rates high until 2025.
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The Trump campaign’s perception of tariffs is based on an outdated understanding of the power of the United States. It is no longer the last consumer in the world because American imports today represent only 15.9% of total global imports, while the European Union’s share is 13.7%, and China’s share is 12.9%.
As one observer put it, most countries except highly integrated neighbors like Mexico or Canada “could replace the United States as an end market with the pain and without disaster.”
Trump’s effect on dollar movements
Kammar saw that Trump’s threats on the dollar front are incoherent. If Trump is certain that “the BRICS group will not replace the dollar in international trade,” then why does he need to threaten these countries? Which is what he says is that de-dollarization is possible today.