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What does a Trump presidency mean for the world?

Muhammad Husnain 04:06 PM | 22 Dec, 2016
What does a Trump presidency mean for the world?
As the newly elected US President Donald Trump has stood upon a stance that he is the president of all Americans and has pledged to bring the jobs back to America. This could be a bad news for Asia as it is the primary manufacturing hub of the world. If the newly elect rolls off the US interests in the region, he will surely have to expect China to get the full benefit of this loophole and take up the position of chief power broker.

The United States and China will have to focus more on their bilateral trade. If both the countries failed to do so, the bilateral trade will become the biggest source of tension for them. If the US imposes extra trade tariffs especially on the electronics sector it would hurt the Chinese exporters which would result in tit for tat, the same trade barriers would be imposed by the Chinese.

As far as the Japan is concerned, US and Japan have signed Trans-Pacific Partnership (TPP). The sole interest of Japan for signing this partnership is to boost up its GDP. On the contrary, trump argues that Japan should shoulder more of the costs for its national security. If we analyse trump’s arguments regarding Japan, it clearly indicates that Japan will have to increase its defence spending. By the increase in the defence spending, Japan’s budget deficit will also increase even further. Most importantly victory of Donald Trump signals the end to TPP which Japan would not want at any cost.

In the case of Europe, even if trump proves to be a moderate president, even than his stance “America First” will be a great headache for the European leaders. Europe is already engulfed in multiple crises and has also lost the trust of the most trustworthy international ally in the recent times. It is the need of the time that the region’s leaders should prepare themselves for the US to change from a vital partner to a problem manager. Europe is foreseeing a partnership with the US famously known as Trans-Atlantic Trade & Investment Partnership (TTIP), whose concluding prospects are much poor, in the light of trump’s anti-trade platform, the position of deal stands no chance of being agreed.

As with the whole world, trump’s presidency will be seen with a suspicion across the Middle East. If we keep the nuclear agreement with Iran aside, its immediate impact will be on our allies. It will strengthen their fear that the US is disengaging from the region and their interests. Trump has taken a stance that he will ban Muslims from entering the US. This will put the relations between US and MENA region on the worst footing. However ultimately the foreign policy of US, particularly in the Middle East, is very unlikely to be among Trump’s key priorities.US fight against IS is highly dependent on the success of ongoing operations. US-Russia relations and coordination will leave a greater impact on future policies. US-Russian operation in Syria & Iraq may also get affected of any uncertain outcomes of operations.

The relationship with Latin America is unpredictable, but the fact is that the region does not pose a geopolitical threat to the US. In this region Mexico has the most to lose if trump acts upon his stance to pull out US of NAFTA. This is because Mexican is export based & if US pulls out of NAFTA, it will rather kill the Mexican economy. However putting an end to NAFTA will also be unacceptable for the US exporters. The revision of trade and bilateral agreements with the commercial partners could affect Brazilian exporters as well because of the fact that the US is the 2nd largest destination market of Brazil.

In the case of US, the major concern of new administration will be tax and entitlement reform to deregulate the extractive industries. To address the demands of his major support base, trump will have to significantly increase spending in the infrastructures. If trump acts upon his promise to raise commercial protectionism, it will result in a business environment for US based companies. The commercial protectionism could pose a threat to the integrity of current supply chains and this will deter the investors who are looking to expand operations in the US.

The winning of trump has been seen with suspicion in the whole world. This is because trump might turn out to be a double-edged sword for the global growth. His preference for the policy easing will help to stimulate the world’s largest economy; the wider benefits will be undermined, if his aggressive protectionist rhetoric is backed up by action. Over a longer period of time trump’s policies might also threaten the US position of the global financial hegemon. After the US election results, a surge in the gold prices was seen which suggests that the investors are already mitigating other alternatives. It seems like trumps policy is based on isolationism. But it is uncertain till now. As soon as he takes over the office his actions will speak louder than his words. After his resuming the office only then something could be said with certainty before that it cannot.

Muhammad Husnain
Muhammad Husnain

Muhammad Husnain is a student of Political Science at Quaid-i-Azam University

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KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on February 03, 2023 (Friday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 272.25 273.25
Euro EUR 297.32 297.65
UK Pound Sterling GBP 333.31 333.61
U.A.E Dirham AED 73.03 73.33
Saudi Riyal SAR 71.49 71.80
Australian Dollar AUD 188.9 191.3
Bahrain Dinar BHD 712.73 720.73
Canadian Dollar CAD 200.95 203.15
China Yuan CNY 39.67 40.07
Danish Krone DKK 39.11 39.51
Hong Kong Dollar HKD 34.19 34.54
Indian Rupee INR 3.28 3.39
Japanese Yen JPY 2.5 2.54
Kuwaiti Dinar KWD 877.76 886.76
Malaysian Ringgit MYR 62.83 63.43
New Zealand Dollar NZD 173.25 175.25
Norwegians Krone NOK 26.76 27.09
Omani Riyal OMR 696.08 704.08
Qatari Riyal ‎QAR 73.62 74.32
Singapore Dollar SGD 204 206
Swedish Korona SEK 25.61 25.91
Swiss Franc CHF 291.69 294.19
Thai Bhat THB 8.15 8.3

KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs 212,900 on Friday. The price of 10 grams of 24k gold was recorded at Rs182,530.

Likewise, 10 grams of 22k gold were being traded for Rs167,318 while a single tola of 22-karat gold was being sold at Rs 195,157.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 212,900 PKR 2,420
Karachi PKR 212,900 PKR 2,420
Islamabad PKR 212,900 PKR 2,420
Peshawar PKR 212,900 PKR 2,420
Quetta PKR 212,900 PKR 2,420
Sialkot PKR 212,900 PKR 2,420
Attock PKR 212,900 PKR 2,420
Gujranwala PKR 212,900 PKR 2,420
Jehlum PKR 212,900 PKR 2,420
Multan PKR 212,900 PKR 2,420
Bahawalpur PKR 212,900 PKR 2,420
Gujrat PKR 212,900 PKR 2,420
Nawabshah PKR 212,900 PKR 2,420
Chakwal PKR 212,900 PKR 2,420
Hyderabad PKR 212,900 PKR 2,420
Nowshehra PKR 212,900 PKR 2,420
Sargodha PKR 212,900 PKR 2,420
Faisalabad PKR 212,900 PKR 2,420
Mirpur PKR 212,900 PKR 2,420

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