Donald Trump is back in the oval office and just seventy five days after taking office and the subsequent flurry of executive orders he has managed to throw the world into anarchy, numerous global and national institutions have been shaken to their core and the world is faced with economic fears and a period of uncertainty.
Trumps antics and political summersaults have very effectively shook up the established world order.
Donald Trump has started his second term with the spectacle of millions of American citizens demonstrating their concerns against the Trump measures like import tariffs against almost the entire world community, curbs on free speech, imprisonment and cancellation of visas of students speaking against the Israeli policies and the severe crackdown on legal and illegal residents in the USA.
America remained unscathed by the two global wars in the 20 th century and not a single shot was fired on the American mainland during WW1 and WW11 and the post war Ameri-can economy enjoyed a tremendous boom.
American progress and prosperity was due to its strong democratic principles, free market economy, political stability and respect for huma values.
The present policies of Donald Trump are all against the long established values and principles of American democracy.
Trump is now daggers drawn with historical friendly nations like Canada and the countries of Western Europe, UK and the EU bloc now the entire world including the closest allies of the USA are up in arms against the reckless Trump policies.
During the last few decades the US has maintained good economic relations with China but under Trump now they are engaged in a fierce trade war with imposition of crippling tariffs from both sides and this global upheaval will probably help China to increase its economic power and political influence in the world.
Putin of Russia ha remained mute but apparently seems to enjoy good relations with Donald Trump.
The investment scenario in the US is now very bleak and due to the tariffs war started by Trump stock markets are crashing all over the world and it now appears that the promise of Billions of dollars investment in the US by the UAE may not take place at all.
Eminent economists and financial experts have already issued serious warnings about a global recession that may cause serious damage t countries with weak economies.
Pakistan stock exchange was in excellent health but suffered a serious dip and historic losses and stock exchanges even in countries like China Japan and Singapore went into a nose dive and their trade with the U suffered some brutal losses.
During his first term in office Donald Trump confined his tariffs onslaught to China only but this time even the poorest countries of the world are facing the tariffs war and their economies are suffering huge losses.
Trump believes that any country exporting goods to America must import an equivalent amount of American goods.
Manufacturing in the US has declined for several decades, and its working class has suffered most.
A substantial proportion of it opted for Trump because the Democrats — under Clinton, Obama and Biden offered no viable alternative The campaign slogan during the election campaign of the Trump camp was “America First” and to make America great once again is now being fulfilled in the form of the recently imposed harsh tariffs on nearly every country in the world and this is supposed to end the trade deficit of the USA.
This new strategy of imposing tariffs will result in increase inflation, end foreign monopolies but will help the local businesses to flourish and earn more profits.
According to the latest figures the US is earning about Two billion Dollars per day by the newly imposed tariffs and it is hoped to collect about three trillion dollars in the national exchequer by the end of the decade.
The new tariffs policy has created problems for the world community including Pakistan.
The Trump policies are being condemned and criticized globally but eventually these very policies will prove to be the main factor in preserving the American global economic supremacy.
The US economic supremacy will usher in a new world order under the captainship of Donald Trump and it appears that Donald Trump will be at the very apex of his political career by the end of the year.
Pakistan today has a golden opportunity to strengthen bilateral relations with the USA by signing new deal on the tariff issue, we must learn from the past and previous mistakes should not be repeated and hasty actions avoided.
A team consisting of economic experts, finance managers, trade experts, businessmen, and seasoned exporters to the US must be formed to start negotiations with the Trump administration.
After a careful analysis of our situation a proposal must be presented to the American side to help the situation of our international trade.
The challenge of the new Trump tariffs policy can be effectively met by some serious bilateral negotiations with the American side.
Because of the ongoing trade war between the US and China the future of global trade faces uncertainty.
The new Tariff policies of Trump will not only effect China but a number of other countries too who import components or systems from China, assemble them locally and export to the USA If such a large number of countries along with China are being adversely affected by the US policies, the consequences will appear in the form of a globaleconomic slowdown and a highly uncertain future.
—The writer is Professor of History, based in Islamabad.
