The Trump Effect: U.S. Economy and World Power Status on the Rise

As soon as Donald Trump was announced the winner of the 2024 election, Hamas called for a peace agreement. The U.S. dollar surged, U.S. stock markets closed at record highs, the Chinese yuan dropped, migrants began reconsidering illegal entry into the country, and 50 European leaders convened, terrified about Trump’s return.

Following Donald Trump’s election victory, a senior Hamas official called for an immediate end to Israel’s military actions in Gaza and reiterated demands for an independent Palestinian state with Jerusalem as its capital.

This stance remains unacceptable to Israel, which considers Jerusalem its capital, a position reinforced by President Trump’s 2017 recognition of Jerusalem as Israel’s capital and the relocation of the U.S. embassy there.

Basically, Hamas wants the same thing they have been fighting for, but they want it handed to them for free because they know they can’t win.

Chinese President Xi Jinping extended congratulations to President Trump, expressing a desire for improved bilateral relations.  However, during his first term, Trump adopted a stringent stance on China, implementing tariffs up to 25% on Chinese imports.

In his upcoming term, he has pledged to intensify these measures, proposing tariffs as high as 60%. Additionally, reports suggest that Trump may reappoint Robert Lighthizer as the United States Trade Representative.

Lighthizer, known for his hawkish views on China, was instrumental in initiating the U.S.-China trade war during Trump’s previous administration.

Currently, China’s economy is facing significant challenges, with projections indicating it may fall short of its 5% growth target.

The reimplementation of aggressive trade policies under Trump’s leadership could exacerbate these economic difficulties.

President Xi is confronted with the challenge of mitigating these potential impacts, as existing economic stimulus measures may not suffice to counteract the Trump-effect.

The Iranian newspaper Hamshahri featured an image of Trump in a prison jumpsuit with the headline “Return of the murderer,” while the hard-line Javan ran the headline “Back to the crime scene.”

In 2018, Trump withdrew the U.S. from the Iran nuclear deal, calling it “one of the worst and most one-sided transactions the United States has ever entered into.”

The deal was so weak, he argued, that it allowed Iran to expand its nuclear program, bringing it close to developing a nuclear weapon.

Given Iran’s ongoing support for groups like the Houthis, Hezbollah, and Hamas, Trump is expected to take an even tougher stance on Iran in his second term.

North Korean leader Kim Jong Un has yet to send a congratulatory message to President Trump, although Trump says that Kim misses him.

Earlier this year, Kim indicated a desire to restart nuclear talks with Trump; however, there have been no official statements regarding any changes to North Korea’s nuclear testing activities.

While Kim has much to lose by clashing with Trump, there is, so far, no sign from Pyongyang that he is altering his course.

Although Vladimir Putin did not send a formal congratulatory message, he verbally congratulated President Trump during a speech at the Valdai Club in Moscow, calling him courageous.

Putin stated that he is open to hearing Trump’s views on the Ukraine war; however, Moscow’s official position remains unchanged, with Putin pushing for his 22-point peace proposal, which effectively carves up Ukraine, disarms it, and isolates it from Europe. Neither President Zelensky nor NATO nor the EU is likely to accept those terms.

Trump has said he could use his deal-making skills to end the war immediately, though he has not provided details. It remains unclear what terms he would consider, but Trump generally avoids deals that give the larger share to the opponent.

It already appears that Trump’s victory is having a positive impact on the U.S. economy and immigration, and he’s already dealt a blow to China. Leaders around the world are reacting, with headlines describing countries “bracing” for the impact of Trump’s return.

It’s good to have our president back—a man who puts America first. Watching world leaders scramble to adjust their policies is almost comical. Trump is like the new sheriff in town, only this time, the town is the entire world.