Donald Trump's administration is remembered for its colourful statements and controversial economic initiatives. His approach to managing the US economy has had a significant impact not only on the domestic market but also on the global economic system. Trump promoted protectionism and sought to strengthen the American economy through tax cuts and energy reforms, but his trade policies and austerity measures led to contradictory results.
Donald Trump's economic legacy is expressed primarily in his aggressive trade policies. ‘Making America great again’ meant for Trump protecting domestic producers and imposing harsh tariffs on imports. The main blow came to China: tariff wars between the two economic giants had an impact on global supply chains.
However, such measures have raised the prices of imported products and reduced international trade, making it difficult for many multinationals to operate. Protectionist policies have also affected US relations with the EU, Canada and Mexico, where renegotiated trade agreements have led to tensions in markets.
Trade wars and their consequences
Trump's trade policies have become one of the most debated topics among economists. The increase in tariffs on Chinese goods has not only affected the US and Chinese economies, but has also caused a domino effect in other markets. The development of ‘trade wars’ has led to increased uncertainty at the global level, especially among developing countries dependent on trade with the US and China. This has caused currency fluctuations and capital outflows from regions such as Latin America and Southeast Asia.
Energy policy and its global impact
Trump has been a strong supporter of conventional energy development. Withdrawing from the Paris climate agreement and incentivising oil and gas production has strengthened the US as the largest energy exporter. This not only changed the balance of power in the global energy market, but also caused oil prices to fall, which hit the economies of exporting countries such as Russia and Saudi Arabia.
Conclusion
Donald Trump's economic policies have left a mixed mark on global markets. On the one hand, his protectionist policies and tax reforms have contributed to a short-term strengthening of the US economy. On the other hand, trade wars and an emphasis on conventional energy have led to increased tensions in international relations and market volatility. Trump's legacy continues to be debated, but one thing is certain: his economic initiatives have had a lasting impact on the global economic system and set new trends in trade policy.
