This essay examines the evolving economic competition between the United States and China through an analysis of proposed Trump administration policies. The paper explores how tariffs, deregulation, and government efficiency initiatives could reshape global trade relationships and supply chains. Key findings highlight the potential for increased economic nationalism and deglobalization trends that may fundamentally alter international business practices.
A Reuters (2024) article from November 2024 discusses the economic impact of a Trump administration on US business. Among other aspects of the impact are the effects of tariffs, new energy policies, labor, de-regulation, and technology. But perhaps most importantly, the article highlights how Trump plans to place Elon Musk at the head of a government efficiency program to eliminate government waste. All of this means that there could be sweeping economic headwinds and tailwinds for US business.
First, is the decision to eliminate waste. Reuters (2024) reports that Trump plans to slash $2 trillion from the federal budget. This could be a serious blow to government contractors—or, it could open the way to re-investment in the American economy. It remains to be seen what will happen.
More importantly is the issue of tariffs. Trump has been apparent about his plan to impose 60% tariffs on China. This could have an enormous impact on supply chains . It could also lead to retaliation. In the globalized economy, tariff war can be very detrimental to way international business is conducted (Goldberg & Reed, 2023). The goal is to get businesses to invest in American made products and to get American industry revitalized. Again, it remains to be seen whether this strategy will work or not.
Trump also plans to lift restrictions on oil drilling, according to the Reuters report. This could help to bring down oil and gas prices. It could also impact the green energy movement, which has absorbed a lot of investment in recent years, particularly from China (Zhao et al., 2022). It may that Trump is really looking to engage in a kind of economic war with China, which he sees as a threat to American economic interests.
Another point raised by Reuters is Trump’s plan to de-regulate, which could have a great effect on technology industries in the US. If Trump wants to increase business investment and initiative in the US, getting rid of red tape could do it.
Overall, this article reflects a lot of important aspects from our business course: the value of leadership, the importance of global trade, the delicacy of supply chains, the impact of regulation as an external factor in business, and ethical/social implications of pursuing policies that go against the clean energy concept.
First, it shows that leadership makes a big difference in business and economics, for it is the leader who brings the vision, the sense of mission, and the decision-making. All else stems from this: regulations, investment, opportunities, supply chains—all are affected by the leadership factor.
Second, one has to consider business within the realm of global trade because the world has become globalized and that is a fact. If global trade is curtailed by tariff wars, new supply chains may need to be erected and new considerations made in terms of resources, energy, long-term sustainability, and opportunity cost. Businesses will have to look at internal and external market forces when making decisions about whether they should expand, contract, stay the course, engage in research and development, and so on.
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