Donald Trump and Global Economy
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Donald Trump and Global Economy

Being in trade industry for a decade it is my duty to educate my people on some information about global issues, In the same concern here is an article, hope it helps you all.

As the Global Markets were getting knocked because of the trade war between the U.S Trump administration and China, it has been increased with worries also rising that President Mr. Trump might pull the US from the NATO military association.

Trump executed 10% and 25% liability on steel and aluminum correspondingly upcoming from all countries. Meanwhile, the first round of price lists was announced in June. But the main hazard came with the declaration of $200 billion price list hassle on China’s exports.

Across the East China Sea, Beijing finds itself increasingly under pressure from the Trump administration and in desperate need of diplomatic and economic allies in the region.

 Foreign policy toward trade and military alliances by USA administration has left Japanese Tokyo feeling unsure of the US support which has underlined its international relations since the end of World War II.

 The United States has formal diplomatic relations with most of nations. This includes all U.N. member states except for Bhutan, Iran, North Korea, and Syria. Additionally, the U.S. has diplomatic relations with the European Union, the Holy See and Kosovo. Means the global presence of USA and Trump Administration has direct impact on many global nations.

 As we aware the Global Markets are interconnected and interdependent on every trade they do with the subordinate nation. Trumps decisions directly affect these nations on their growth pattern.

 How could it Impact on Indian Market?

The effect of a trade war among the superpowers I.e. U.S and China may have consequences which may influence the global and the Indian economies. Due to this, India might catch some change in the dynamics in Indian economy. Such as, demand and supply, may come in to the picture where, shortage of goods whichever it is either finished material or else raw material, can rise the final consumption rate for the consumer. Which may burden on increased tax from all the duties viz.,

  • The value of Indian rupee.
  • Indian stock markets.
  • India US Duties ex: America executed duties on steel and aluminum, India should be paid million cost/worth of tax to the US which will make consumers life much more difficult at the end as everything become more expensive. Hence, it is sensible to analyze the probable impacts and to be plan consequently.
  • Price fall on Indian goods and import materials price raise.
  • Unlike Pharma, Automobile, Energy and other sectors Indian IT Companies benefit by the raise in Currency value to USA as INR is the mode USA companies pay to Inda.
  • U.S Oil barren values globally define crude oil prices as commodities also interconnected in trade world
  • Indian medicine industry export percentage to USA stays at 91% of overall manufacturing, this leads many pharma companies to panic situation as they cannot export produced old goods, imposing FDA laws recently killed Indian Pharma Export market in July 2017.

Donald Trump As a Global Leader play very vital role in world peace, war weapons are their major market, hence it is global concern and fear to defend USA or TRUMP decisions easily on any matter/decisions they make.

Global Markets in the period of Trump, Indian Prime Minister Modi term is being completed in 2019 May. The impacts on NIFTY may go Pathetic if Modi Fails to crack the position again. Further, ruling parties’ decision, laws, plans, implementations, global relationship and trade procedures create vast impact on Indian trade market. Let’s hope for the best and invest Carefully.

Editorial Credits to Mrs. Punitha, Business & Marketing Analyst, www.ravieqs.com

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