Trump's Re-election, Will a 'Trump Storm' Hit the Global Economy? [AK Radio]

Former U.S. President Donald Trump won a landslide victory in this presidential election and will enter the White House in January next year. Trump is expected to fully launch ‘Trumpism,’ emphasizing a stronger policy stance and America First ideology than before. His return to power is anticipated to have a massive impact on the global economy, and concerns and opposition from countries around the world are already following.

Cabinet Formation Speed Race

Trump immediately accelerated the formation of his cabinet after winning the election. In particular, this appointment emphasized young and unconventional figures based on loyalty, showing his determination not to repeat the mistakes of his first administration, which experienced early chaos. However, the newly nominated Treasury Secretary candidate Scott Bessent was known for advocating a gradual approach to tariff policies, which the market interpreted positively, leading to a rise in stock prices.

However, on the 27th, Trump made a tough announcement via social media that he would impose a 25% tariff on all products imported from Mexico and Canada starting from his first day in office, putting the global market back on edge.

Tariff Weaponization Begins

Trump made it clear that he intends to ‘weaponize’ tariffs. He declared strong tariff impositions citing issues such as drug inflow from Mexico and Canada and failures in illegal immigration control. Additionally, he announced plans to impose an additional 10% tariff on top of existing tariffs on China. He strongly pressured China by presenting the resolution of the fentanyl problem as a condition. In response, Mexico and Canada have announced retaliatory tariffs, suggesting the possibility of a full-scale global trade war.

In this situation, the economies of major countries have already turned red. The IMF has downgraded South Korea’s economic growth forecast for this year, and major economic powers such as China and Germany are also facing growth slowdowns and structural problems. China is expected to struggle to meet its growth targets due to domestic demand and real estate market slumps and local government debt issues, while Germany, despite being a key European economy, is criticized as the ‘sick man of Europe.’ On the other hand, the U.S. is evaluated to have successfully achieved a soft landing of its economy amid swift interest rate cuts. Employment market stability, appropriate wage growth, and strong growth rates support this.

'Virtual Asset President'

Meanwhile, Trump’s return to power is also affecting the virtual asset market. After his election, Bitcoin prices surged, once approaching $100,000, but have entered a short-term correction phase. The U.S. government’s announcement of plans to stockpile Bitcoin as a strategic asset has kept expectations for the virtual asset market high. Trump also revealed plans to establish a virtual asset czar, providing additional momentum to the market.

While the policy direction of the Trump administration is likely to have a positive impact on the U.S. economy, it is expected to pose a significant burden on the global economy. The influx of funds into the U.S. and the strengthening of trade barriers raise concerns that global economic growth may slow down. Experts warn that Trump’s protectionism could have destructive effects worldwide.

The ‘Trump Storm’ set to intensify with Trump’s return to power is being closely watched by countries around the world to see what impact it will have on the global economy and how global economic actors will respond.