Donald Trump has been elected the 47th president of the United States after highly contested US election, overcoming challenges such as unfavorable polls, ongoing legal battles, and other obstacles during his two-year campaign. His victory follows a contentious race against Democratic Vice President Kamala Harris, marked by debates over issues like abortion, immigration, and divisive topics such as race and gender.
Donald Trump’s upcoming second term as president of the United States raises a number of pressing questions, both for the U.S. and the rest of the world. As the globe awaits his return to office, several key issues will be closely monitored.
The war in Ukraine remains a critical global concern. Trump has expressed a desire to bring the war to an end, but the complexities involved make it a difficult task. The question is whether Trump will cut support for Ukraine, potentially leading to a Ukrainian surrender and a full Russian takeover, which seems unfeasible. Another possibility is that he may push for a settlement where Russia occupies large portions of Ukraine, but this too is unlikely to be accepted. A potential exit strategy could involve assurances that Ukraine will not join NATO—something that has not been realistic for years—or the European Union, which has also delayed membership. While Trump’s willingness to broker peace is clear, the practicalities of a resolution remain uncertain.
For years, Trump has argued that the U.S. is contributing too much to NATO while European powers fail to meet their defense spending commitments. He has already reduced U.S. contributions to NATO in the past, and many expect him to do so again. The NATO Secretary General has reassured that NATO will continue to function, but European countries are already preparing to chart their own course, with France urging others to look at their own defense needs. This could signal a shift in the way NATO operates under Trump’s leadership.
Another big question is whether Trump will ease sanctions on Russia. Sanctions have been a central tool in efforts to isolate Russia, but their effectiveness has been debated. While they have affected Russia’s economy, they haven’t brought the country to its knees. Trump may seek to negotiate a deal with Russia in order to bring them to the table over the war in Ukraine, but it remains unclear whether he will lift sanctions as part of these negotiations.
A hallmark of Trump’s first presidency was his aggressive trade policies, particularly with China. While China has adjusted to these tariffs by shifting manufacturing to Mexico, Trump is likely to continue pressing for more changes in trade relationships. Expect further developments on tariffs and trade deals, particularly in relation to the North American Free Trade Agreement (NAFTA) and the movement of Chinese goods through Mexico.
Trump’s stance on Israel is another area of focus. Under Joe Biden, the U.S. has been a staunch supporter of Israel, though the Biden administration has criticized some Israeli policies, particularly regarding Gaza. Trump’s approach to Israel was notably more direct, and the question now is whether he will push Israel to exit Gaza. On the other hand, Trump has been firm on Iran, so the situation in Gaza may be influenced by his broader Middle East strategy.
Trump’s foreign policy during his first term was characterized by a tough stance on Iran, including the assassination of top Iranian leaders. It’s likely that Trump will continue to pursue a hardline approach to Iran during his second term, which could escalate tensions in the Middle East further.
One of the major domestic questions is whether Trump will implement tax cuts during his second term, as many expect. If these cuts come to fruition, they could potentially stimulate the U.S. economy and, by extension, the global economy. However, there is also concern that these tax cuts could worsen inflation, which has already been exacerbated by the trillions of dollars injected into the global economy during the COVID-19 pandemic. The impact of tax cuts on inflation remains a key concern.
The question of whether oil prices will decrease is tied to several factors, including Trump’s approach to energy policy. The U.S. is now energy independent, but Trump’s support for the oil and gas industries, particularly fracking, could see increased production of U.S. oil and gas. More American oil entering the global market could potentially drive down oil prices, which would benefit the global economy but hurt oil producers in countries like Saudi Arabia, Iran, and Russia. If the war in Ukraine resolves and tensions in the Middle East ease, oil prices might stabilize or even fall.
The U.S. is pushing to bring semiconductor manufacturing back onshore as part of a broader strategy to decouple from China. Trump is likely to support this initiative, which aims to reduce dependence on China for high-tech manufacturing. This could result in more tariff wars and further push the “China Plus One” strategy, where businesses seek alternatives to China for their supply chains.
Finally, as tensions in Ukraine and the Middle East dominate global attention, it’s important not to overlook what’s happening in the South China Sea and with Taiwan. China has been increasing its military presence in the region, and Trump’s stance on defending Taiwan could be a major issue. While the U.S. has a mutual defense treaty with Taiwan, Trump has previously promised to avoid foreign entanglements. Whether he will escalate U.S. military involvement in the region to defend Taiwan remains one of the biggest uncertainties.
As the world watches the unfolding of Trump’s second term, these are some of the critical issues that will shape both U.S. domestic policy and global relations.
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