The 'Trump Effect' is Dominating the World

More than a month remains until US President-elect Donald Trump is officially inaugurated, 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 his decision to end the moratorium on plans to build 500 new Jewish homes in areas disputed with Palestinians. The 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.

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

The recent volatility in financial markets reflects the uncertain psychology of the US President-elect, who has never held any political position, and has senior officials of countries, leaders of corporations and institutions around the world wondering whether the incoming US administration will rewrite the rules that shape global affairs. "For allies or countries with opposing views towards the US, Donald Trump's victory could lead to the US abandoning its commitment to maintaining the global order that it has implemented over the years," said Ivo Daalder, former US ambassador to NATO and now president of the Global Affairs Council.

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

Along with the above reasons, Mexico's economy has been affected since the US election. In addition to 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 ask 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 Southeast Asian nation’s government is also seeking to win Trump’s support. Duterte has appointed Jose EB Antonio, a real estate tycoon who helped build the Trump Tower in Manila, as trade envoy to the United States.

Like the Philippines, the UK 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 Mr. Trump’s victory can bring to China. He will return to traditional policies, focusing mainly on the role of the dollar and seeking to expand the US 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 Republican candidate coming to power. Accordingly, Moscow is no longer worried about the US reaction to the trial of people considered to be close to Washington.

According to Dan Tri