The US President’s Policies Threaten to Disrupt Global Trade Dynamics and Create New Business Opportunities

On his second day in office, US President Donald Trump set the stage for a dramatic reshaping of the global economic landscape, with policies that promise to affect businesses and nations worldwide. Known for his bold, no-compromise approach, Trump has wasted little time in taking steps that will have ripple effects far beyond the US borders.

One of his first major moves came on January 21, when he threatened to impose taxes on foreign companies in countries that impose additional taxes on US firms. This appears to be a direct challenge to Europe, which has introduced digital services taxes targeting US tech giants like Google. Australia, with similar taxes, may be next in line.

This move follows Trump’s executive order to withdraw from the global minimum corporate tax agreement, which was initially brokered under President Joe Biden’s administration and designed to create a more balanced international tax system. With Trump’s victory in the 2024 election, the deal has effectively been rendered obsolete, signalling a shift in how the US will approach global economic policies.

Trump’s economic policies highlight three key truths that may have been overlooked in recent years:

The US remains a global superpower due to its economic strength and will prioritise its own prosperity, often at the expense of others.
America’s actions have far-reaching consequences for the rest of the world, and relationships with the US are increasingly shaped by economic self-interest.
Trump’s overwhelming electoral win suggests his approach is not an anomaly, but rather the new standard for US economic policy.
In this new landscape, nations like Singapore could find themselves at an advantage. With Trump’s administration keen on promoting business-friendly environments, Singapore’s plans to reduce corporate tax rates may align with his vision, allowing the country to attract more US firms without being seen as a tax haven.

Trump’s new approach could potentially unlock business opportunities as countries and companies adapt to his shifting global tax order. His focus on high-tech sectors such as AI, crypto, and cybersecurity is likely to accelerate, especially with key appointments like former PayPal executive David Sacks as a White House czar for AI and crypto. These industries could see a significant boost as the US intensifies its competition with China, which currently holds a dominant position in AI patents.

At the same time, Trump’s policies signal a retreat from global green initiatives. With his focus on boosting domestic oil and gas production through the US shale revolution, Trump has already rescinded several climate-related subsidies and pulled out of the Paris climate agreement. This shift raises questions about the feasibility of climate financing and green investments in a world under Trump’s economic policies.

However, some observers are concerned about the long-term costs of Trump’s pro-business, tax-cutting agenda. Higher inflation and interest rates could challenge the sustainability of these policies, with experts warning that the growth generated may not be enough to offset the deficits they create.

Ultimately, Trump’s approach marks a return to a more conservative, business-centric economic strategy, which could bring both growth and challenges. The shift towards bilateral trade deals, rather than multilateral agreements, is reshaping the global economic order and positioning Trump as a key architect of this new world order.