US Re-Emergence under Trump
Donald Trump’s ambition to re-emerge the United States as a global power has been evident in his economic policies. During his first term, he used trade agreements to benefit the US economy, imposing tariffs on imports from countries like Mexico, Canada and South Korea. The European Union also had to adapt to new trade conditions and tariffs in the auto and steel industries to maintain their market presence in the US.
Biden did not reverse these policies and instead, maintained the tariffs and even expanded the sanctions against Russia. The EU and the US have been maintaining a strong alliance, but the economic constraints on the EU have been significant.
The US has been imposing sanctions on Chinese companies, citing national security concerns, which has also affected Western companies that do business with China. The chip industry is particularly vulnerable, as the US is threatening secondary sanctions if companies do not comply with its demands.
China, in response, is developing its own advanced products, narrowing the gap with Western companies. The US’s dependence on China is growing, rather than decreasing.
To counter this, the EU and the US are promoting the development of their own future industries, but separately, in a competitive manner. The US is using hundreds of billions of dollars in subsidies to attract investments, while the EU is also offering its own subsidies. This competition is leading to a further expansion of the debt in Western states.
The US has a larger market and more financial power, which is leading to a de-industrialization of Europe. However, the Chinese economy is still growing and the trade deficit of Western states against China is worsening, resulting in a decline of the export revenues of Western companies. The US is becoming poorer and China is becoming richer.
Trump’s plans for re-emergence are unclear, but he has been hinting at a more aggressive approach, including the potential acquisition of Canada, Greenland and the Panama Canal. The EU and the US are already showing a willingness to negotiate, but also to demonstrate strength. The mainstream media is starting to understand Trump’s demands and the fear of being subjugated to China and Russia is growing.
However, the unease among the population and the leadership is also increasing and the potential for conflict is growing.