What Trump's win means for S Asia

The US has just concluded our generation's most eagerly watched presidential elections. Donald J Trump has won the White House resoundingly, and in addition, the Republican Party, also known as the Grand Old Party, has now wrested control of the Senate and has a comfortable majority in Congress.

- SIDDHARTHA THAPA

Simply put, Trump and the GOP now have complete control of the executive and legislative branches of the government, which will embolden the new administration to pursue policies with determination.

The world is closely watching how the Trump administration will usher in a new foreign policy paradigm that revolves around Trump's "America First" philosophy.

Foreign policy mandarins across the globe have mixed feelings about Trump's victory: Allies in Europe are gripped with anxiety, whereas in South Asia, there is a sense that since the rhetoric of Trump's election campaign focused on combating China, Asia is on the cusp of witnessing unprecedented American engagement.

It is in this context of American outreach in Asia that South Asia will play a pivotal role in shaping outcomes of a constantly evolving new world order.

The heart of the US's contention with China revolves around two critical issues: Trade and technology. The Covid-19 pandemic demonstrated to the world how global trade supply chains depended on supply lines in China. With the resurgence of the America First policy, the Trump administration is determined to impose new trade tariffs of up to 60 per cent on Chinese exports. While the supposed new tariffs are likely to come into play in the second half of 2025, there is palpable fear that new trade tariffs could bring in disruptions to global trade as costs are likely to increase in the coming days.

The Trump administration is determined to create new jobs to revitalise the economy by incentivising manufacturing in the country. Whilst Trump's plan to re-establish the US as a manufacturing hub is seen as a patriotic move, could higher labour costs in a developed country contribute towards lower production costs?