Trump’s Triumph to Benefit US Economy First, Then World Economy

Josef Kefas Sheehama

It is crucial to remember that whether a Democrat or a Republican holds the White House tends to have little impact on American policy. Remember that President Trump will prioritize strengthening the U.S. economy during the first two years of his administration.

To accomplish this, President Trump will assess the country’s financial situation and closely monitor the successful reduction of $35.95 trillion in gross national debt. According to Jodey Arrington, chair of the House Budget Committee, that amounts to $107,345 per individual, $273,533 per household, and $497,080 per child. We must realize that Trump is a businessman whose goal is to compete with the world’s richest nations or economies. As such, he will ensure that the focus is on the domestic market. As of November 2024, the United States GDP is $29.17 trillion and its GDP per capita is $86.6 thousand, according to data from the IMF. In contrast, China’s GDP is $18.27 trillion and its GDP per capita is $12.97 thousand. In contrast, China saw a significant increase in its economic development and outperformed America, with its GDP expected to grow by 4.8% in 2024 compared to 2.8% in the United States. The US economy’s robust consumer spending is the main driver of its 2.8% annualized rate. The three main pillars of the Chinese economy are manufacturing, exports, and investment. With President Trump’s self-centered policies and his disregard for global issues, the international community is grieving.

Additionally, the world community is aware that Trump will prioritize assisting European nations in economic reform and encouraging them to reform their defenses after stabilizing the American economy. Trump’s return to office entails a more intense trade war with China and the imposition of high tariffs on the majority of Chinese goods. In addition, he increased import duties on solar panels, washing machines, and steel and aluminum from overseas. International economic output could be negatively impacted by 10% tariffs, which could lead to a destructive trade war between the world’s communities. Anger in the US over certain European NATO nations not allocating 2% of their budget to the military may be reflected in Trump’s trade policy and the uncertainty

surrounding it, which may have an effect on the European economy. Their relationship will suffer as a result, possibly ending in divorce. Despite Trump’s worries about NATO nations, we must realize that America will support Europe in its relations with other continents. European economies will be affected in a variety of ways as the initial export boost from increased US fiscal stimulus wanes and the drag from tighter monetary policy, higher inflation, and tariff increases.

Furthermore, President Trump’s economic policies will increase the government’s debt load and deficits. Along with his plans to increase spending, he has proposed significant tax cuts for both individuals and corporations. The U.S. market will suffer as a result of these economic proposals, which will make the country’s economy more isolated. If all of Mr. Trump’s suggested economic policies are carried out, the American economy will deteriorate dramatically. On top of the lengthy lead times required to build Greenfield manufacturing facilities in the United States, manufacturers would probably be extremely cautious and proceed slowly due to the extreme uncertainty that would be created by the tariffs. The response from China and Mexico is compounding the economic impact of the increase in U.S. tariffs. They’d probably respond by imposing in-kind tariffs on goods coming from the United States.

Moreover, Africa will not gain much from Trump’s return. There may be a threat to the African Growth and Opportunity Act (AGOA), which grants duty-free access to the American market. Thousands of African nations that rely on American exports may be put in jeopardy as a result. Trump’s tariffs on China may have an indirect impact on international trade and, consequently, African exports. The repercussions of Trump’s presidency should be evaluated by African nations; practical diplomacy will be crucial. As a result, African leaders should refocus their plans on economic diplomacy that strikes a balance between Trump’s transactional approach and Africa’s needs. By utilizing strategic alliances and vital minerals, Africa may have the opportunity to draw in more direct investment. Trump’s win has ushered in a new period of uncertainty for Africa. Even though the future is full of obstacles, there might be chances to rethink partnerships and support Africa’s interests in a more cutthroat international setting.

For Namibia’s economy, what does this mean? What changes will this new government bring about in Namibia’s trade relations with the United States?

It is crucial to comprehend Namibia’s foreign policy goals that all nations, regardless of the specific world to which they belong, have two main foreign policy goals: maintaining national security interests within and around their borders and advancing social and economic advancement through international relations. Namibia’s trade relationship with the United States is based on important exports, including minerals, cocoa, and oil. Changes in the US administration may result in changes to trade policies, especially if protectionist barriers, new trade agreements, or higher tariffs are adopted. A protectionist approach could impact local producers and possibly lower

foreign exchange inflows by limiting Namibian exports to the US or driving up prices. However, an administration that supports free trade and closer ties might open up new markets for Namibian products, which would boost the country’s economy.

A possible decrease in fuel prices is one of the most expected advantages of Trump’s presidency for Namibia. Trump has previously demonstrated his ability to engage in negotiations with Vladimir Putin of Russia, which has sparked optimism that he could help bring an end to the conflict in Ukraine. The outcome might be a drop in oil prices worldwide, which would lessen Namibia’s high fuel expenses at the moment. Lower fuel prices would reduce inflation and raise living standards in a nation that is struggling economically, which would help both businesses and households.

In conclusion, Namibia has mixed feelings about Trump’s second term because the African Growth and Opportunity Act (AGOA) is about to expire in 2025 and its extension is no longer just a formality. The act might not be renewed in its current form or might be adjusted to better align with U.S. security and economic goals. As a result, Trump’s win brings Namibia into a new era of uncertainty. Notwithstanding the challenges, there may be opportunities to reorganize alliances and advance Namibia’s interests in a more competitive global environment.