The world under Trump 2.0 – Standard Chartered

Source Fxstreet

Trump’s policies will likely incur costs, including for the US; this raises questions about their longevity. Trade wars, anti-immigration policies and a rejection of multilateralism will be high on the agenda. Other countries and regions are bracing for the new reality, with varying levels of adaptability, Standard Chartered’s Senior Economist Philippe Dauba-Pantanacce notes.

Ideology or pragmatism?

“Who will win the argument between ideology and pragmatism? Trump’s chosen appointees and advisers are firm believers in protectionism, anti-immigration policies, and maximum pressure against Iran; it appears that the team is being assembled with a view to fully implementing Trump’s agenda. But his political instincts could ultimately be obstructed by the economic costs of his maximalist campaign promises – particularly higher inflation.”

“That could become a political liability ahead of the 2026 midterm elections; the party that controls the White House tends to lose midterms. Ideologues are likely to be willing to accept the initial costs of their policy choices for the sake of longer-term outcomes. But political cycles are shorter-term in nature, and pragmatists could be willing to make a course correction if economic costs become impossible to ignore. Those costs could potentially include higher inflation, pressure on economic sectors struggling with the reduction of immigrant workers, or a stock-market correction.”

“While execution is uncertain, some core tenets of Trump’s worldview are unlikely to change. On the foreign policy front, he has decisively rejected multilateralism and is likely to take an adversarial approach to – or refuse to participate in – multilateral agreements, compromises and institutions. This has implications for global climate policy, the UN, Bretton Woods institutions, and US relations with the EU. US foreign policy will likely return to a focus on bilateral discussions, where the US enjoys the most leverage given its size and influence. This does not mean that no deals will be agreed, however. We look at the various regions to see what Trump 2.0 could mean for the rest of the world.”

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
WTI moves above $64.50 due to odds of Saudi Arabia raising August Oil prices for AsiaWest Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $64.60 during the European hours on Tuesday.
Author  FXStreet
Jul 01, Tue
West Texas Intermediate (WTI) Oil price gains ground for the second successive session, trading around $64.60 during the European hours on Tuesday.
placeholder
Dogecoin Closes June In The Red With 14% Losses, Will July Be Any Better?With the close of June, the Dogecoin price has once again confirmed the bearish trend of the month.
Author  Bitcoinist
Jul 02, Wed
With the close of June, the Dogecoin price has once again confirmed the bearish trend of the month.
placeholder
Solana (SOL) Cools After Recovery — Resistance Proving Difficult to CrackSOL price is now correcting gains and might struggle to rise above the $155 resistance.
Author  NewsBTC
Jul 04, Fri
SOL price is now correcting gains and might struggle to rise above the $155 resistance.
placeholder
Silver Price Forecast: XAG/USD consolidates right below $37.00 in risk-off marketsSilver consolidates the previous two days' gains and remains pinned near $37.00.
Author  FXStreet
Jul 04, Fri
Silver consolidates the previous two days' gains and remains pinned near $37.00.
goTop
quote