The highly anticipated US election has come to an end as the Republicans won, making Donald Trump the 45th President of the United States. His victory over Democratic rival Hillary Clinton has shocked many, where major protests have been conducted across America today to show their dissatisfaction over the result.
Some experts suggested that similar to Brexit, this might cause uncertainties in the global economy as well, causing people to choose a wait-and-see approach.
Today, the ringgit opened at a three-month low against the US dollar in line with the inconsistent crude oil prices post-US presidential election. At 9am, the ringgit was quoted at 4.2500/2550 against the greenback from 4.2240/2300 yesterday.
“Trump’s victory might affect emerging markets in Asia, which are heavily tied to America’s economy and the US dollar,” said PropertyGuru Regional Head of New Projects Winston Lee.
So with this, what can one look forward to under Trump’s regime?
When it comes to setting policies, Trump’s policies which were mentioned during the campaign speeches contradicts largely with the policies set by the former President Barack Obama. So let’s look at some of the policies which might be amended very soon.
1. Trade
Once Trump takes control, America will be withdrawn from the Trans-Pacific Partnership (TPP) agreement, a trade pact signed among 12 countries which includes Singapore and Malaysia. He will also renegotiate the North American Free Trade Agreement (NAFTA).
Trump is also expected to impose a trade tariff of up to 45% if China refuses to change its “predatory” practices, besides imposing a 35% tax on any US company that fires its workers, move out to another country and then sell its product in the US market.
2. Immigration
Trump’s approach with immigrants is quite different than the current existing policy, which might end Obama’s Illegal Immigration Act. According to Trump, a wall should be built along the borders of Mexico, where the costs of building the wall should be borne by Mexico. It is highly unlikely that Mexico will foot the bill of US$13 billion (RM55 billion) for this.
He also suggested deporting illegal immigrants with criminal records and jail immigrants who re-enter illegally, which might cost up to US$166 billion (RM702 billion).
In addition to this, Trump also suggested extreme vetting on immigrants, which includes a screening test performed on those who do not share the same cultures and values. This may involve a temporary ban on Muslims entering the country, as well as stopping visa issuance to people from countries such as Syria and Libya.
3. Foreign Policy
In terms of foreign policies, Trump suggested reviewing obligations to NATO and may not guarantee protection to fellow NATO countries which are under attack; unless that country has fulfilled its obligations.
Besides that, he also wishes to withdraw troops from Europe and Asia, if allies fail to pay more for protection.
During his political speeches, he also spoke of a few controversial issues which involve deploying US military to the East and South China Seas to show their strength when renegotiating the trading relationship with China, as well as “bomb the hell” out of the Islamic State.
4. Economy and Jobs
Trump promised to create 25 million new jobs and introduce measures to grow the economy by 4% per year. One of the measures is by deep tax cuts, which would result in enlarging the national debt further.
He also suggested infrastructure spending of up to US$1 trillion over 10 years through a public-private partnership.
5. Healthcare
Cancel the Affordable Care Act, which is known as Obamacare Act, which brought health insurance to 12.7 million people who struggled to get medical coverage. However, if this is canceled, a new system which gives more power to the Senate will be introduced.
6. Political Reforms
Meantime, Trump also looks forward to amending the Constitution to limit the term of all members of Congress, impose a hiring freeze on federal employees and ban foreign lobbyists.
7. Environment and Energy
Meanwhile, the restrictions on the production of US$50 trillion (RM211 trillion) worth of US energy reserves, including shale, oil, natural gas and clean coal will be lifted. This includes the Keystone Pipeline, which is feared to cause environmental damage.
Moreover, payments made to the UN Climate Change Programmes will be cancelled and the money will be channeled to fix America’s water and environmental infrastructure.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
