New Delhi [India], January 25 : As Donald Trump begins his second term as the President of the United States, his administration appears poised to take a more balanced approach to trade policies, according to a report by YES Securities.
The report highlighted a departure in Trump policies from the aggressive tariff-centric strategies that defined Trump's first term, signaling a shift towards a mix of trade negotiations and strategic tariff use.
It said "Vibes from Trump 2.0 regime inauguration suggest a shift from the aggressive tariff policies of his first term towards a more balanced approach that includes trade negotiations".
During his first term, President Trump frequently employed tariffs as a primary tool to address trade imbalances and protect U.S. national interests.
While these measures disrupted global trade and strained relations with several countries, they also created an environment for potential negotiations. This period saw heightened tensions as nations grappled with U.S. policies aimed at safeguarding its economy.
The report suggested that Trump's second term will feature a more calculated approach. While tariffs are expected to remain part of his policy toolkit, their application will likely be more restrained and strategic. The principle of "Small Yard, High Fence" is expected to guide these measures, focusing on sectors critical to economic and national security while minimizing unnecessary disruptions.
The report also added that the global trade landscape has also evolved since Trump's first term. Several nations are now better prepared to engage with the U.S. on trade matters. Many countries have expressed willingness to lower import duties or increase imports from the U.S. to foster stronger economic ties.
It said "The world is now better prepared to engage with the U.S. on trade matters, with several nations signaling openness to reducing import duties or increasing imports from US to foster better relations".
This readiness could enable the Trump administration to transition from blanket tariff impositions to more nuanced trade agreements that balance U.S. interests with global cooperation.
The report noted that Trump's rhetoric on tariffs has reignited global concerns about trade policies. However, the vibes from the inauguration of his second term indicate an openness to diplomacy and collaboration.
By adopting a targeted and strategic approach, the Trump 2.0 administration could aim for greater precision in addressing critical concerns while ensuring minimal disruption to the global economy.
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