AS expected the US President Donald Trump’s inaugural speech has set new policies of international cooperation, engagement, trade, tariffs and human migration producing ripples in the markets and creating shock waves in many capitals around the globe. In his first speech Donald Trump pledged to rescue America from further decline, prioritising a crackdown on illegal immigration and portraying himself as a national saviour chosen by God. Trump’s declaration of national emergency at the southern border would be a bold step, however, it would create social chaos and political uncertainty with regional countries as well. Thus Trump 2.0 would again implement his Mexico policy.
During his speech Trump also announced to declare a national energy emergency through putting an end to the green New Deal and revoking the electric vehicle mandate. It would start a new round of trade war between the US and China because renewable and development of green technologies, mainly solar and wind panels have become new drivers of Chinese openness, modernization, qualitative industrialization and last but not the least economic globalization and international cooperation. Moreover, global commitment towards carbon footprint and neutrality would be on the receiving end and will be further delayed and marginalized.
Furthermore, Trump emphasizing on following higher tariffs and taxes on foreign countries to enrich his citizens would backfire and ultimately disturb the regional as well as international trading system. He has certain plans to impose tariffs on Canada, Mexico, Brazil, China and many other countries thus international trade has become the easy prey of Trump’s new tariff policy. High inflation, price hick and disruption in global supply chains would hit even the common citizen of the US and rest of the world in the days to come. Trump’s announcement of establishing the brand new Department of Government Efficiency, stopping all government censorship, following of two genders policy and forging of a merit based society are salient features of his so-called revolutionary social development parameters starting a new debate among the US social activists and jurists terming it discriminatory and anti-development and human.
Additionally, Trump’s passion for building the strongest military of the world has once again indicated a new arms race in the world; however, his pledges not to indulge any war or marital conflict should be appreciated. Nevertheless, the Israel-Palestine war and Russia-Ukraine conflict would test his promises and statesmanship in the days to come. One of the biggest surprises of his speech was changing the name of the Gulf of Mexico to the Gulf of America showing a paradigm shift in the US foreign policy further eroding norms and principles of the international law pertaining to sovereignty and territorial integrity. It seems that the Panama Canal issue would create a new hot debate in the international media and create further fuss in the bilateral relations between the US and China.
Moreover, Trump’s announcement of space advancement, envisioning American astronauts planting the stars and stripes on Mars, has been labelled by strategists as a new round of a global space race, diverting investments from social development to space exploration. Meanwhile, Ding Xuexiang, China’s Vice Premier, addressing the World Economic Forum, criticized protectionism for escalating trade tensions and emphasized the importance of a “win-win” approach to global trade. Highlighting China’s easing of foreign investment restrictions and efforts to boost domestic consumption, Ding stressed that economic globalization, while challenging, is a universally beneficial process rather than a zero-sum game. He called for balanced trade, noting that China seeks competitive imports rather than trade surpluses. As the IMF warns that Trump’s tariffs could exacerbate trade tensions, lower investment and disrupt global supply chains, global policymakers must prioritize cooperation and mutual benefit to foster sustainable growth and shared prosperity.
In summary, Trump 2.0 has already changed rules of engagements, trade, tariffs and economic globalization further diminishing prospects of economic globalization reversing towards anti-globalization, isolation, protectionism, eclipsing effectiveness of the international law and organization and the US withdrawal from the WHO and climate change would be disaster for global health and controlling of global warming in the days to come. However, the Chinese President Xi Jinping’s telephonic conversation with Trump calling for greater progress in China-US relations at a new starting point would decrease trade tensions between the two countries.
Xi’s highlighting China and the United States are two great countries that are pursuing their own dreams and are committed to making their people live a better life, vividly reflecting the strategic importance of mutual respect, cooperation and trust sharing extensive common interests and broad space for cooperation. Thus mutual respect, trust, cooperation, should be the way forward in achieving mutual success and prosperity, and benefit both countries and the world.
Xi said the Taiwan question concerns China’s national sovereignty and territorial integrity, expressing hope that the U.S. will handle it with extra prudence showing China’s foreign policy guaranteeing national pride, sovereignty and territorial integrity. Last but not least, China-US economic and trade relations should be mutually beneficial and win-win and confrontation and conflict should not be a choice. Thus upholding the principles of mutual respect, peaceful coexistence, and win-win cooperation, strengthening collaboration, and doing more great, practical and good things for both countries and the world enabling China and the United States to continue moving forward along a course of stable, healthy, and sustainable development.
—The writer is President, Pak-China Corridor of Knowledge, Executive Director, CSAIS, regional expert: China, CPEC & BRI.
