Following months of speculation, America has elected Republican candidate Donald Trump as the new President of the United States of America. Being the American President, Trump’s policies and his agenda is expected to send ripple effects across the globe.
Donald Trump’s policies: Uncertainty on major US policies
Trump’s win is provoking a sentiment of uncertainty similar to what we experienced in June following the win of the Brexit campaign. An analysis of Trump’s main campaign points provide little detail about the main foreign and economic policies that his new administration will adopt. Amongst various contentious topics raised during the presidential campaign, Donald Trump argued in favour of adopting a tougher stance on economic ties with foreign trading partners and implementing a stricter immigration policy.
This uncertainty has already been expressed in financial markets. Following the news that Trump has won the US election, many investors started to shun risky assets with most major markets registering declines overnight or on opening. On immigration, Trump’s policies are quite clear, however the extent and the implications of his policies on the matter are yet to be determined.
Impact on US Trade and Foreign relations
Trump has pronounced himself against the existing trade deals with China and the Transatlantic Trade & Investment Partnership (TTIP) currently negotiated with the European Union – claiming that such agreements are not in the best interest of the American people and are pushing businesses out of the US with the resulting effect of lower job creation and economic growth.
Another important implication is the relationship between the US and UK, with Trump signalling closer relations through the establishment of a trade agreement following Brexit. This would have major implications on the economic relationship between the US and UK, and also on the pending Brexit negotiations.
It is expected that the debate on tax jurisdiction will intensify if Trump is to deliver on his promise to address the presence of multinational companies outside of the US. In the same thread, Trump has indicated that he will address the longstanding issue of tax paid by fund managers on Wall Street. These are issues of considerable magnitude, and the world awaits Trump’s next move.
During his electoral campaign, Trump’s policies have also pointed towards improved economic and political ties with Russia. In doing this, Trump is also expected to address the issue of the instability in the Middle East particularly in Syria and the fight against ISIS - which has featured prominently in his campaign. The US relationship with European allies within NATO has also been highlighted by Trump in his campaign, and in this regard, Trump has noted that role of the US within NATO has to be well-defined and that all NATO Members must contribute. Other matters which will be revisited include ties with Iran and Israel.
Immigration Policy
Trump has been highly vocal on his position on immigration, and in this respect, his proposals are clearly outlined in his 10 Point Plan. Amongst Trump’s policies, the erection of the US-Mexico wall and the deportation of illegal immigrants are two of the most striking policies that have raised a considerable amount of commotion. Whether Trump will garner sufficient support for his proposals, and the extent to which he will manage to implement these policies is yet to be determined. However, Trump’s policies are already prompting US citizens to seek an alternative residence. In fact, ‘immigration’ tops the recent trending searches on Google.
Seeking stability for yourself and your business
As Trump’s victory unsettles the financial markets, investors are looking at safe currencies and assets such as gold to mitigate uncertainty in the market. Similarly, companies dealing with the US market need to address the uncertainty arising from the policy implications of the Trump presidency.
Being the leading experts in Residency & Citizenship law and Corporate law, we at Chetcuti Cauchi are well positioned to offer advice on business protection and relocation, capital markets and potential investment opportunities in Europe.
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