Trump 2.0: Potential Impact on America, World Affairs, and India’s Global Strategy Known for his unorthodox governance and “America First” rhetoric, a second term under Trump would likely see a continuation—and in some cases, an intensification—of the priorities and policies he championed during his first tenure.
5 min readAs speculation grows around a potential return of Donald Trump to the White House, both allies and adversaries are watching closely, preparing for a shift in U.S. domestic and foreign policy that could reshape global dynamics. Known for his unorthodox governance and “America First” rhetoric, a second term under Trump would likely see a continuation—and in some cases, an intensification—of the priorities and policies he championed during his first tenure. Analysts are examining what such a presidency might mean across critical areas for the United States, the world, and regional powers like India.
Domestic Shifts: Deregulation and Economic Nationalism
Trump’s domestic agenda would likely focus on bolstering the U.S. economy through deregulation and tax cuts. Known for his pro-business stance, Trump could prioritize sectors he views as essential to American jobs, including energy, manufacturing, and technology. While such policies might stimulate growth, environmental and labor rights advocates warn they could come at a cost, reducing regulatory oversight that safeguards workers and the environment.
On immigration, Trump could push for renewed restrictions, particularly affecting asylum seekers and family-based migration. This aligns with his focus on strengthening the domestic workforce, though it would likely face significant opposition from pro-immigration groups and may strain diplomatic relations with neighboring countries. Social and cultural issues, too, could see intensified policy shifts as Trump appeals to conservative voters, particularly around reproductive rights, education, and freedom of expression—potentially further polarizing American society.
Foreign Policy: “America First” and an Era of Intensified Self-Reliance
On the global front, Trump’s “America First” doctrine could reshape the U.S.’s role, reducing reliance on traditional alliances and seeking a more self-reliant path. His approach to China, for example, would likely involve further decoupling of U.S.-China economic ties. This could include continued tariffs, restrictions on Chinese technology, and incentives for American firms to relocate production back to the U.S. or other allied nations, which would deepen trade barriers and affect the global economy.
In the Middle East, Trump might build on the Abraham Accords by promoting further diplomatic normalization between Israel and other Arab states. However, his stance on Iran would likely revert to “maximum pressure” strategies, combining sanctions with rhetoric aimed at curbing Iran’s regional influence. This approach could strengthen U.S. relations with allies like Israel and Saudi Arabia, though it risks intensifying volatility in the Middle East.
For traditional allies in Europe, Trump’s re-election might rekindle tensions within NATO, as he could pressure members to increase defense spending or face a more transactional partnership with the U.S. His approach might challenge the cohesion of the alliance, pushing European nations to explore independent security frameworks, possibly reshaping transatlantic relations.
Global Trade and Economy: Bilateral Deals and Economic Nationalism
In trade, a Trump second term would likely emphasize bilateral over multilateral deals, focusing on trade policies that he views as directly beneficial to American industries. This could involve new tariffs on imports from nations he perceives as economic competitors, including the European Union. Such policies would likely disrupt global supply chains, particularly in sectors dependent on U.S. trade, potentially creating economic challenges for emerging economies that rely on American markets.
Energy and Environment: Focus on Fossil Fuels and Reduced Climate Commitments
Energy independence and support for fossil fuels could be cornerstones of Trump’s second-term domestic policy. His stance on energy might see the U.S. doubling down on oil, gas, and coal while limiting federal support for renewable energy. This approach could widen the gap between the U.S. and environmentally proactive nations, particularly in Europe, while potentially slowing international climate action momentum.
On the international stage, Trump’s limited engagement in climate agreements would likely reduce the U.S.’s influence in global climate diplomacy. If the U.S. steps back from climate leadership, other major economies might also be less incentivized to uphold aggressive climate targets, which could have long-term impacts on global sustainability.
Shifting Geopolitical Landscape: New Alliances and Power Dynamics
Trump’s potential re-election could accelerate the shift toward a multipolar world. With a likely retreat from multilateral organizations, the U.S. would focus more on bilateral interests, creating openings for other powers like China, Russia, and the European Union to expand their influence in areas historically led by the U.S., from trade standards to diplomatic forums.
In the Indo-Pacific, Trump’s policies could force regional powers to reassess their alignments. Countries might either side with the U.S. in its rivalry with China or adopt a more balanced approach to maintain economic ties with both powers. The Middle East, Africa, and parts of Latin America might also explore new strategic alliances if U.S. engagement in multilateral aid and development decreases.
Implications for India: Balancing Strategic Opportunities and Economic Challenges
For India, a Trump second term could bring both opportunities and challenges. India’s defense and technological collaboration with the U.S. could deepen, particularly as Washington seeks to counterbalance China in the Indo-Pacific. With shared concerns over regional security, India and the U.S. could strengthen their strategic partnership, advancing India’s role as a regional power.
However, Trump’s focus on economic nationalism may complicate trade relations. Indian exports, particularly in pharmaceuticals, textiles, and IT services, might face tougher market conditions if Trump enforces protectionist trade policies. India may need to develop alternative economic strategies to sustain its position in the U.S. market amidst shifting trade priorities.
On environmental matters, Trump’s climate stance could further diverge from India’s environmental commitments. As India steps up its climate goals and aligns with countries prioritizing sustainable development, it may find common ground with Europe and other environmentally proactive nations. This could open new avenues for collaboration while allowing India to balance its ties with the U.S.
Soft Power and Global Perception: Evolving Views of the U.S. on the World Stage
Globally, Trump’s second term could position the U.S. as a more assertive, unilateral actor, which may gradually erode the soft power that traditionally complements its economic and military influence. If the U.S. emphasizes national interests over collaborative leadership, international perceptions of American society and governance could shift, affecting its global standing.
This shift in U.S. policy might lead countries to reevaluate their own diplomatic strategies. Some may seek closer alliances with the U.S., while others might focus on regional partnerships or explore independent paths. As other nations observe these shifts, the world may see an era of dynamic realignments and changing diplomatic landscapes.
The Long Shadow of a Trump “Second Act”
A second term for Trump could intensify trends from his first presidency, shaping U.S. domestic policies and international relations for years to come. His combined focus on economic nationalism, unilateral diplomacy, and limited multilateral engagement might create a more insular U.S. presence on the world stage. For countries like India, the challenge will be to navigate these changes strategically, ensuring they maintain a strong partnership with the U.S. while adapting to an increasingly multipolar world. As nations brace for possible changes, Trump’s potential return underscores the ongoing transformation of global power dynamics and the complex interconnections shaping the future of international relations.
-Dr. Shahid Siddiqui; X @shahidsiddiqui