{"id":39403,"date":"2025-03-19T19:35:33","date_gmt":"2025-03-19T14:05:33","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=39403"},"modified":"2025-03-19T19:35:35","modified_gmt":"2025-03-19T14:05:35","slug":"making-america-great-again-maga-effect","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/19-03-2025\/making-america-great-again-maga-effect","title":{"rendered":"Making America Great Again (MAGA) Effect Outside the US"},"content":{"rendered":"\n

Syllabus: GS 2\/IR<\/strong><\/p>\n\n\n\n

In News<\/strong><\/h2>\n\n\n\n
    \n
  • Donald Trump’s aggressive trade policies, particularly the imposition of higher tariffs, have had global economic repercussions.<\/li>\n<\/ul>\n\n\n\n

    Key Developments Under Trump’s Economic & Trade Policies<\/strong><\/h2>\n\n\n\n
      \n
    • Tariff Impositions & Trade Wars:<\/strong>\n
        \n
      • Imposed tariffs on China, the EU, Canada, and Mexico<\/strong>, leading to retaliatory measures.<\/li>\n\n\n\n
      • Affected global supply chains, economic growth, and market stability<\/strong>.<\/li>\n\n\n\n
      • Increased costs for U.S. consumers and businesses, contributing to inflationary pressures<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • Challenges to International Organizations:<\/strong>\n
          \n
        • Reduced U.S. contributions<\/strong> to the UN, and NATO<\/strong>.<\/li>\n\n\n\n
        • Signed executives orders to withdraw from membership of the World Health Organization (WHO).<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • Withdrawal from Global Agreements:<\/strong>\n
            \n
          • Signed executive order directing U.S. withdrawal from the Paris climate agreement \u2014 again.<\/li>\n\n\n\n
          • Exited the Trans-Pacific Partnership (TPP)<\/strong>, affecting trade alliances in the Indo-Pacific.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Impact on the U.S. Dollar & Inflation:<\/strong>\n
              \n
            • Higher tariffs raised domestic prices<\/strong>, impacting purchasing power.<\/li>\n\n\n\n
            • Trade tensions led to fluctuations in global markets<\/strong>, affecting investor confidence.<\/li>\n\n\n\n
            • Some countries explored alternative trade settlements<\/strong>, raising concerns about the U.S. dollar\u2019s role as the global reserve currency<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

              India\u2019s Response<\/strong><\/h2>\n\n\n\n
                \n
              • Since 2016, India has raised tariffs and increased protectionist measures, diverging from its earlier trend of reducing import duties.<\/li>\n\n\n\n
              • Despite internal pressure, India maintained higher tariffs<\/strong> but is now reassessing its stance<\/strong> in response to Trump\u2019s trade policies<\/strong>.<\/li>\n\n\n\n
              • The Union Budget <\/strong>has reduced customs duties on various items,<\/strong> signaling a shift away from protectionism, aiming for better trade relations with the U.S.<\/strong><\/li>\n\n\n\n
              • Average customs duty has been reduced to 10.66% from 11.66%.\n
                  \n
                • Duty cuts on items such as bourbon, high-end cars, and motorcycles are intended primarily for Washington.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                • The tariff cuts aim to address concerns over India\u2019s high-tariff economy as global trade barriers rise.<\/li>\n<\/ul>\n\n\n\n

                  China\u2019s Consumption Push<\/strong><\/h2>\n\n\n\n
                    \n
                  • To counter the trade war with the U.S., China has introduced a comprehensive consumption boost plan, marking the most extensive policies in over 40 years.<\/li>\n\n\n\n
                  • The plan includes raising workers’ incomes and improving domestic spending to shift from an export-driven to a consumption-driven economy.<\/li>\n\n\n\n
                  • China aims to make people more confident in spending, with the government targeting around 5% growth.<\/li>\n\n\n\n
                  • Analysts expect further stimulus in 2025 to mitigate the impact of U.S. tariffs.<\/li>\n<\/ul>\n\n\n\n

                    Europe\u2019s stand\u00a0<\/strong><\/h2>\n\n\n\n
                      \n
                    • European leaders are reacting to the U.S. threat to withdraw defense support, with Germany increasing defense spending and setting up a 500-billion-euro infrastructure fund.<\/li>\n\n\n\n
                    • Although the short-term impact on GDP is uncertain, these measures aim to boost Europe\u2019s security and economic growth.<\/li>\n\n\n\n
                    • Some European countries are considering closer ties with Canada, possibly with Canada joining the EU, as Trump\u2019s policies push Canada away.<\/li>\n<\/ul>\n\n\n\n

                      Way Ahead<\/strong><\/h2>\n\n\n\n
                        \n
                      • Expanding FTAs<\/strong>: India has already signed key Free Trade Agreements (FTAs) with UAE, Australia, and ASEAN nations<\/strong>, and is negotiating deals with the UK, EU, and Canada<\/strong>.<\/li>\n\n\n\n
                      • Boosting Domestic Manufacturing<\/strong>: The Production-Linked Incentive (PLI) scheme<\/strong> should be expanded to support key sectors like electronics, pharmaceuticals, and green energy<\/strong>.<\/li>\n\n\n\n
                      • Promoting Agricultural & Service Exports<\/strong>: Strengthening global markets for Indian agriculture, textiles, IT, and pharmaceuticals<\/strong>.<\/li>\n\n\n\n
                      • Strengthening WTO\u2019s Role<\/strong>: India should push for fair trade rules, particularly for developing nations<\/strong> in the WTO.<\/li>\n\n\n\n
                      • Championing BRICS & G20 Economic Reforms<\/strong>: India, as a key BRICS and G20<\/strong> member, should lead discussions on de-dollarization, alternative payment mechanisms, and sustainable finance<\/strong>.<\/li>\n\n\n\n
                      • Reforming IMF & World Bank Voting Rights<\/strong>: Advocating for greater representation of emerging economies in financial decision-making<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                        Source :IE<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                        Donald Trump’s aggressive trade policies, particularly the imposition of higher tariffs, have had global economic repercussions.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39403","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=39403"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39403\/revisions"}],"predecessor-version":[{"id":39404,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/39403\/revisions\/39404"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=39403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=39403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=39403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}