Global trade may fragment further under Trump

The election of Donald Trump for a four-year term as President of the United States increases the uncertainties in the global geopolitical scene and trade prospects.

- T N C RAJAGOPALAN

Equity markets have, however, reacted positively at the prospects of tax cuts that can fuel economic growth in the U.S. In his first term that started in 2017, President Trump pulled the U.S. out of the Paris climate accord, the World Health Organization and Trans-Pacific Partnership trade negotiations. He started a trade war by raising the tariffs on many items originating from China, Europe and some other countries who all retaliated by imposing higher tariffs and restrictions on imports of various products originating from the U.S. He renegotiated the trade deal of the U.S. with Mexico and Canada, refused to okay the appointment of the Director General of the World Trade Organization (WTO) and wrecked its dispute settlement mechanism by refusing to allow appointment of enough referees at the appellate forum.