The Trump Economy has been the greatest success factor for Trump. Even his strongest critique and the mainstream media acknowledge his economic achievements. Saddled with a national debt of more than $20 trillion, reviving the U.S. economy was one of the Trump Administration’s highest priorities. There was very little time to waste as the House elections were to take place on November 2018; the Trump Administration only had two years to showcase some significant economic improvements so as to retain majorities in the House and the Senate.
In his very first week at the White House, President Trump made good on his promise of withdrawing from the Trans-Pacific Partnership. He also immediately sought the renegotiation of NAFTA. Since then he has also imposed steel and aluminum tariffs on the EU and most countries.
While the negotiations were ongoing, the trade war between U.S. and China involved the imposition of tariffs on $250 billion worth of each other’s products. Although there was initial optimism that deal could be struck, the trade talks failed because Chin reneged on a previous agreement to change some of its laws. This prompted President Trump to impose 25% tariffs on $500 billion worth of goods imported from China. At this point, China only had the option of tweaking the percentages on its existing tariffs.
While the trade war is not healthy for the world’s economic growth, there could be some benefits to developing countries. Ever since China has positioned itself as a global manufacturing hub, most of the newly developing countries have lost their crucial manufacturing sector and have experienced massive unemployment. Developing a manufacturing base is crucial for newly developing countries to build and strengthen into a diversified economy. With the ongoing trade wars, some developing countries are getting a rare opportunity to revive their manufacturing sectors and compete in the global marketplace.
The stock market has broken its own record 62 times in the last two years under the Trump Administration. The American people have a renewed confidence in the economy. President Trump and his policies have significantly helped to improve the overall perception of the U.S. economy, which is directly reflected in the performance of the stock market.