Trump's foreign policy deviates from conventional methods, instead, it prioritizes profit and commerce
In a bold move to reshape the global economy, U.S. President Donald Trump's economic policy focuses on protecting U.S. self-interest, reshaping trade deals to favour American workers and businesses, and implementing significant tax cuts to stimulate domestic growth.
The core elements of this policy include:
- Aggressive use of tariffs on imported goods, aimed at pressuring trading partners to renegotiate trade deals perceived as unfair to the U.S. Tariffs target many countries, sometimes up to 50%, reflecting a strategy focused on economic nationalism and prioritizing American interests over traditional free trade.
- Major tax reform legislation ("One Big Beautiful Bill") delivers substantial tax cuts to the middle class, small businesses, and manufacturers. The bill lowers taxes on tips, overtime, Social Security, and increases child tax credits, aiming to increase disposable income and job creation. It is projected to create close to one million new jobs and reduce federal taxes on average by about $3,752 per taxpayer by 2026.
- A willingness to challenge existing global supply chains and trade alliances, pursuing more bilateral or regional trade deals that the administration sees as more advantageous to U.S. economic interests. This approach has generated significant opposition from states like California and from trade partners, citing damage to businesses and job losses related to tariffs.
- Incentives for domestic production within tax breaks to encourage manufacturing and investment domestically rather than abroad.
Despite these policy goals aimed at reshaping the global economy around U.S. self-interest, these measures have generated widespread public and political criticism. Surveys show majority disapproval of the tariff strategy due to higher consumer costs and supply chain disruptions, and skepticism about the long-term effects of the tax and budget legislation. Critics argue that tariffs act like taxes on consumers and raise trade tensions, undermining broader economic power and cooperation.
Moving forward, Trump's attention is now focused on Europe and the Middle East. His economic overhaul, announced in April, has resulted in cut trade deals, imposed tariffs, and a booming U.S. stock market. The administration is preparing to hawk America's wares to the world, finding pragmatic partners in the Gulf.
The energy sector is no exception. The National Energy Dominance Council, chaired by Interior Secretary Doug Burgum and co-chaired by Energy Secretary Chris Wright, is set to shepherd American business delegations to Gastech in Milan and Adipec in Abu Dhabi. Europe's commitment to buy billions of dollars in American gas per year is expected to make this year's Gastech event in Milan a total deal fair. Adipec promises much the same, with a high-profile guest list looking to increase co-operation with partners across the Middle East.
Trump's approach, while often aggressive and tactless, resonates with people due to his authenticity, which most public officials in the West lack. His economic policies aim to ensure that deals benefit the U.S. and not just other countries. He believes it is not America's job to prop up other countries at the expense of its own.
One area where this is particularly evident is in the administration's focus on dominating the AI race. The administration believes it is crucial to American security and economic success. Dominating the AI race is a priority for the Trump administration.
In conclusion, Trump's economic policy key elements are protectionist trade tariffs, sweeping middle-class tax cuts and incentives for domestic production, and a reorientation of trade deals toward perceived American self-interest. These policies remain controversial and divisive domestically and internationally. However, Trump's focus on economic prosperity as a means of projecting influence, combined with his efforts to unlock America's resources and find pragmatic partners, has fundamentally remade the global economic order.
- The news about President Trump's economic policy shift has drawn attention to the Gulf, UAE, and Middle East, as the administration seeks to boost business partnerships in these regions.
- The U.S. President's economic overhaul involves reshaping the world's trading landscape, with a focus on protecting American self-interest, as seen in the aggressive use of tariffs.
- Trump's policy prioritizes domestic growth, aiming to increase jobs and boost the American economy through significant tax cuts for the middle class, small businesses, and manufacturers.
- With the energy sector under close scrutiny, American business delegations are set to attend Gastech in Milan and Adipec in Abu Dhabi, looking for opportunities to export billions of dollars worth of American gas to Europe.
- The Administration's approach to global trade and investment is marked by a preference for bilateral or regional deals that best serve American economic interests, provoking opposition from states like California and trading partners.
- In response to criticism, surveys show majority disapproval of the tariff strategy due to its potential to raise consumer costs and disrupt supply chains.
- The White House, in an effort to further the administration's goals, aims to dominate the AI race, considering it vital for American security and economic success.
- European commitment to buy American gas coupled with the high-profile guests at Adipec is expected to increase co-operation with partners across the Middle East.
- The general-news and opinion pieces around the world have taken a strong stance on Trump's economic policies, often debating the long-term effects and implications of these measures on the global economy.
