The 'Trump Effect' is Dominating the World

US President-elect Donald Trump is still more than a month away from taking office, but his recent election victory is already shaping events around the world.

New York TimesOn December 1, there was an article commenting on the effects of American politics, especially when Mr. Trump is preparing to take power, on world events.

US President-elect Donald Trump. (Photo: EPA)

Last week, the Israeli mayor of Jerusalem announced the end of a moratorium on plans to build 500 new Jewish homes in disputed areas with Palestinians. The Jerusalem mayor's office said the timing was right and the decision was not politically motivated. However, the mayor also hinted that he had seen a "green light" from Trump's victory.

With Donald Trump poised to become the 45th President of the United States, his victory is shaping world events. While corporations are hoping for Trump’s economic “revival” policies, some countries are concerned that the tycoon’s protectionist stance could increase the value of the US dollar, affecting other currencies. As a result, governments are reassessing their trade, defense, and immigration policies.

The recent volatility in financial markets reflects the unstable psychology of the US President-elect, who has never held any position in politics and has made senior officials of countries, leaders of corporations and institutions around the world probe whether the incoming US administration will rewrite the rules that shape global issues. Mr. Ivo Daalder, former US Ambassador to NATO and now Chairman of the Global Affairs Council, commented: "For allies or countries with opposing views of the US, Donald Trump's victory could lead to the US abandoning its commitment to maintaining the global order that it has implemented in recent years."

While the stock prices of many companies around the world have fallen after Mr. Trump's victory, the stock of an Israeli company called Magal Security Systems has risen sharply recently. This is a company that helps develop high-tech security barriers around the Gaza Strip and the West Bank. Therefore, with Mr. Trump's announcement to build a wall along the border between the US and Mexico, investors expect that companies like Magal may have more "room to perform" in the near future.

Along with the above reasons, Mexico's economy has been affected since the US election. Besides the above declaration of building a wall, Mr. Trump also threatened to withdraw from the North American Free Trade Agreement. With these statements, the Mexican peso has depreciated sharply, forcing the Central Bank of Mexico to adjust its forecast for domestic economic growth last week, citing "the impact of the US election process".

Meanwhile, within NATO, the alliance’s leaders are also seeking to force member states to increase their defense budgets in response to Trump’s statement that the US will no longer “carry the burden” for other countries in the near future. Last week, Lithuania’s new Prime Minister pledged to increase defense spending.

In the Philippines, where President Rodrigo Duterte has clashed with his counterpart Barack Obama, the government is also seeking to win Trump’s support. Accordingly, President Duterte has appointed Jose EB Antonio, a real estate tycoon who helped build Trump Tower in Manila, as trade envoy to the US.

Like the Philippines, Britain is also considering appointing Nigel Farage, the leader of the "Brexit" movement, as its ambassador to the US. According to The Times of London, Mr. Nigel Farage may hold some position in the US next year.

In China, the initial optimism about Mr. Trump is giving way to skepticism. Speaking at a recent conference of the Chinese Academy of Social Sciences in Beijing, retired General Zhu Chenghu said: “We should stop thinking about the benefits that a Trump victory can bring to China. He will return to traditional policies, focusing mainly on the role of the dollar and seeking to expand the American presence across the oceans.”

Continuing on the "Trump effect", a Russian analyst recently said that the arrest of Economic Development Minister Alexei Ulyukayev was influenced by the upcoming Republican candidate's rise to power. Accordingly, Moscow is no longer worried about the US's reaction to the trial of people considered close to Washington.

According to Dan Tri