Trump's Return: A New Era of Global Trade and Climate Policies

With Donald Trump's anticipated return to power, Moody's Ratings predicts significant shifts in US fiscal, trade, climate, and immigration policies. These changes could benefit India and ASEAN countries due to diverging US-China trade flows but may challenge global supply chains and environmental commitments.


Devdiscourse News Desk | Updated: 10-11-2024 14:15 IST | Created: 10-11-2024 14:15 IST
Trump's Return: A New Era of Global Trade and Climate Policies
US President-Elect, Donald Trump (Photo: Reuters). Image Credit: ANI
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In a significant forecast, Moody's Ratings has predicted that Donald Trump's potential presidency could lead to substantial policy shifts impacting global trade and climate initiatives. The anticipated tug-of-war between the US and China might redirect trade and investment to India and ASEAN nations, affecting regional economic dynamics.

Moody's highlights that Trump's proposed tax reforms, which include making the 2017 Tax Cuts permanent, are expected to exacerbate federal deficits. His protectionist trade policies could spell disruptions for global supply chains, directly impacting key sectors like manufacturing, technology, and retail, though legislative hurdles may alter these agendas.

On the environmental front, Trump's agenda is predicted to favor fossil fuel expansion, possibly retracting the US from international agreements. Despite potential federal rollbacks in clean energy policies, state-level initiatives and market trends in renewable energy might counterbalance this pivot, maintaining momentum in sustainable developments.

(With inputs from agencies.)

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