On January 20, 2025, Donald John Trump took the oath for a second term as the 47th president of the United States of America. With this, the world ushers in the era of Trumpism. Trumpism colloquially means political ideology associated with Donald Trump and his policies. Trumpism signifies the policy of hyper-nationalism, quid pro quo, conservatism, and crony capitalism. This Trump tenure will be marked by several global upheavals that will dissect the world order into pre- and post-Trump eras. The Trump era will witness a more reclusive American foreign policy, limiting America’s role in multilateral arrangements and enhancing focus on domestic interests. For the world, Trumpism will signify an epoch of global realignment, trade wars, and the disintegration of the collective West. In this piece, we’ll decipher American policies under Trump 2.0 and their impact on the global landscape.
TRUMP 2.0: KEY HIGHLIGHTS
AMERICA FIRST APPROACH
Hyper-nationalism is the essence of all domestic and foreign policy under the Trump administration. To set the tone of his tenure, Trump signed a series of executive orders on the same day as his swearing-in ceremony. These orders include putting America first in international environmental agreements, declaring a national emergency on the southern border, and ending birthright citizenship for new children of immigrants, etc. The common theme in all these orders was hyper-nationalism and the America-first approach. On the foreign policy front, Trump called for rebranding the Gulf of Mexico as the Gulf of America and taking over Greenland. Furthermore, to maintain the hegemony of the US dollar, Trump reiterated his warning to impose sanctions against any effort towards de-dollarization. President Trump’s “America First” policy seeks to prioritize U.S. interests through economic protectionism, stringent immigration controls, and a re-evaluation of international alliances.
DISINTEGRATION OF COLLECTIVE WEST
With the message of “No New War,” Trump pledged to end the Ukraine war, indicating a US pull-out from European conflicts. The Trump administration has initiated direct negotiations with Russia regarding the Ukraine conflict, bypassing traditional allies in Kyiv and Brussels. Furthermore, Trump questioned the relevance of NATO, expressing doubts about NATO’s collective defence obligations. He criticised NATO allies for not spending enough and demanded to increase the target of 2% of their GDP to 5%, suggesting that the US may reconsider its commitment to the alliance. Spooked by Trump’s unilateral policies vis-a-vis Ukraine and NATO, the EU foreign chief said, ‘The free world needs a new leader.’. In response, European nations, led by France and Germany, proposed rearming independently of U.S. support, fearing potential abandonment. President Trump’s policies have introduced strains within the Collective West, leading to a re-evaluation of alliances and prompting concerns about global stability.
TRADE WARS
Economic reciprocity is the word to encapsulate Trump’s trade policy, implying reciprocal tariffs on trading partners. In February 2025, President Trump imposed a 25% tariff on all imports from Canada and Mexico, citing concerns over illegal immigration and drug trafficking. The administration also targeted China with a 10% tariff on Chinese imports, aiming to address trade imbalances and intellectual property concerns. China responded with its tariffs, further escalating tensions between the two largest economies. Trump also announced plans to impose a 25% tariff on goods imported from the European Union (EU). These decisions are part of a broader protectionist trade policy aimed at addressing trade imbalances and promoting domestic industries. These aggressive trade policies and tariffs have disrupted the international economic order, fostering uncertainty and potential inflation.
TRUMP 2.0: GLOBAL OUTLOOK
EUROPE
Trump’s policies are going to have an overarching impact on the entire world. For Europe, the impact is going to be multifaceted across various domains, including trade, defence, and international relations. The protectionist stance under Trump has led to heightened trade tensions between the United States and Europe. Trump’s proposal of imposing tariffs to equalise its trade with Europe will severely hit the European economies that benefitted from the bilateral trade worth $975 billion. On the security front, with a self-centred US and an aggressive Russia at the doorstep, Europe faces a genuine conundrum. For decades, Europe has been complacent enough to focus on its defence and relied on the US. Now, it faces a situation where it has to stand on its own. The coming years will see Europe strengthening its military capabilities and developing a joint defence effort independent of the US.
RUSSIA
Under Trump’s admission, the US and Russia will witness a potential thaw in relations between Washington and Moscow. In February 2025, President Trump and Russian President Vladimir Putin engaged in direct communications, initiating discussions aimed at resolving the ongoing conflict in Ukraine. Furthermore, Trump’s decision to halt all kinds of US aid and assistance to Ukraine comes as a boon for Russia. This move rendered Ukrainian forces toothless in resisting Russian aggression on the battlefield, allowing Russia to capture more land. However, the US sanctions remain in their place. Thus, Trump’s second term has led to a complex interplay of engagement and contention in U.S.-Russia relations. While diplomatic initiatives suggest a willingness to reset ties, concurrent economic sanctions and shifts in military aid policies reflect enduring challenges.
CHINA
For China, Trump’s tenure will bring both challenges and opportunities for Beijing. While Trump’s aggressive trade policies and geopolitical stance create hurdles for China, certain aspects of his administration may indirectly benefit Chinese interests. For starters, China had to bear the brunt of 10% tariffs on Chinese imports, with a planned increase to 20%. In response, China vowed to respond in kind and asserted its readiness to fight any kind of war, trade or otherwise, initiated by the US. The U.S. may tighten restrictions on Chinese companies, limiting access to critical technology, semiconductors, and AI advancements, hampering China’s tech ambitions. Furthermore, a potential thaw between Russia and America will wedge a gap between Russia and China. With the end of the Ukraine war, America will get a breathing space to reorient its strategy and focus solely on curtailing China.
Moreover, lifting American sanctions on Russia in case of ending the war in Ukraine would be detrimental to China. This would help Russia to end Chinese monopsony and bolster its trade with other nations. With this, Russia could act independently, pulling it away from the Chinese influence. This would mean China would lose a reliable junior partner in case of any future conflict against the US over Taiwan or otherwise. However, Trump’s criticism of NATO and Europe, along with potential disengagement from traditional allies, could reduce Western unity against China. If Trump weakens trade agreements with Europe and other partners, China may emerge as a more stable and attractive global trade partner. If Trump weakens trade agreements with Europe and other partners, China may emerge as a more stable and attractive global trade partner.
INDIA
Trump 2.0 is going to be a mixed bag for India. Trump advocates strengthening ties with India, particularly in defence and security. Under Trump, we could see increased arms deals and intelligence sharing to counter China. If Trump escalates tariffs on China, U.S. companies may diversify supply chains and look to India as an alternative manufacturing hub. Unlike Democratic administrations, Trump is less likely to pressure India on internal issues like Kashmir, CAA, or minority rights, allowing India greater policy autonomy. However, Trump’s “America First” approach may lead to higher tariffs on Indian exports, potentially hurting Indian businesses. Furthermore, tightened H-1B visa regulations would affect Indian professionals working in the U.S. This could impact India’s IT sector and remittances. Overall, a Trump 2.0 administration is likely to be more beneficial than harmful for India, especially in defence and countering China, but it could bring economic challenges through protectionist trade policies.
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CONCLUSION
Donald Trump’s return to the White House signals a dramatic shift in U.S. domestic and foreign policy, with profound implications for the global order, trade, military alliances, and international stability. While his “America First” approach aims to prioritise U.S. interests, it also risks fragmenting alliances, igniting economic conflicts, and shifting geopolitical power balances. While U.S. economic nationalism may benefit domestic industries, it could also strain alliances and trigger global instability. Under Trump, the US will become more isolated but economically self-reliant. Nations will have to adapt to a new multipolar world order where the U.S. no longer plays the stabilizing role.
