Tag: USA

President elect Donald Trump has vowed once again that in the Trump-2 presidency he will put America first and is considering tariffs on imports into the Unite States. Indeed, he recently showcased what is referred to as “Economic Statecraft”* by threatening two of the United States’ major economic partners, Canada and Mexico, with higher tariffs. In this case, tariffs are being used as an economic wall to halt/curtail the flow of illegal immigrants and cross-border drug trafficking. Furthermore, China is the biggest source of the eurozone’s imports with bilateral trade reaching Euros 739 Billion in 2023. Donald Trump is considering sticking China with 60% tariffs on all exports to the USA and may use tariffs on European countries in the eurozone as a stick to curtail imports from China. 

*Economic Statecraft – Is defined as the use of economic means to achieve foreign policy goals. 

Overview

It would appear that the slogan used by the Republicans and the then ex-President Trump in the run-up to the presidential election of “Make America Great Again”, translates into using economic statecraft to the possible economic harm and certainly disadvantage of their allies. President elect Trump has threatened tariffs on China’s exports to the USA of 60%, plus 10% -20% tariffs on all other imports. Analysts suggest that if a full trade war does indeed commence, the cost to the Eurozone in a combined total of exports is valued at circa USD36. 6 Billion in 2025 and 2026. The President elect is on record as having said the 27 nation bloc will have to “pay a big price“ for not purchasing enough American exports.

Data released by the European commission shows that in 2023, the United States imported goods from the European Union to the value of Euros503.3 Billion, representing one fifth of all non-European exports. Exports from the eurozone to the United States are led by vehicles and machinery (Euros207.6 Billion), chemicals (Euros137.4 Billion) other manufactured goods (Euros103.7 Billion), which together makes up circa 90% of the unions exports to America. Economist suggest that if tariffs are indeed put in place by the Trump administration a collapse in exports would have a detrimental effect on trade-orientated economies with the Netherlands and Germany being the likely countries to be hardest hit. 

Some analysts are even suggesting that a potential upcoming trade war could push an already sluggish Eurozone economy into a potential full blown recession. Analysts are also advising that the Euro could also fall to parity with the US Dollar (first time since late 2022) if a trade war weakens an already under pressure eurozone economy. As of November 2024, the eurozone private sector slipped into contraction, with the eurozone PMI* figures (dropped below the 50 mark) being somewhat gloomy to say the very least, and is a wake-up call for eurozone policy makers that the economy is still showing signs of weakness. 

*Eurozone PMI – This is known as the Eurozone Purchasing Manager’s Index and is a monthly survey of services and manufacturing companies in the Eurozone that measure the direction of economic trends. The PMI is a weighted average of five indices, New Orders (30%), Output (25%), Employment 20%), Suppliers Delivery Times (15%), and Stocks and Purchases (10%). This index ranges from 0 to 100 and anything above 50 indicates an increase, and anything below 50 indicates a decrease. 

In other areas, the elevation of President elect Trump to his second stint in the White House will experts believe, put pressure on the eurozone countries to spend more on defence. Apart from the trade surplus the Eurozone enjoys over the United States, what also rankles with the President elect is that the combined eurozone spending on NATO is only 1/3 of what the USA spends, and noises emanating from team Trump suggest that the United States will expect an increase in defence spending.

Indeed, just USD326 Billion was budgeted by EU governments for defence spending in 2024. Back in 2017, an increase in spending on defence equipment by 35% was budgeted by the European Union, however today only 17% or just under 50% of that figure has been achieved. Furthermore, analysts suggest that the President elect will demand that the EU countries spend at least 2 – 2 ½ %, possibly as much at 3%, of GDP on defence, and it is suggested that countries such as Spain who only spend circa 1.4% of GDP are in his bad books.

Eurozone

Donald Trump’s first presidency was marked by its transactional nature, and he ranked world leaders by his perceived weaknesses and strengths, and in some case his personal taste. The European Union has 27 states and below is an overview of the Trump effect on some of their bigger economies.

1. Germany

In Q3 of 2024, the German economy narrowly avoided a recession, and with ex-President Donald Trump being re-elected to the White House the current outlook for the German economy is unfavourable to say the least. The incumbent Chancellor of Germany Olaf Scholz made it quite clear that he was supporting Kamala Harris’s bid for the White House, so it will come as no surprise that President elect Trump will have him and Germany in his sights when it comes to tariffs.

Experts are suggesting that the election of Donald Trump to the White House marks the start of what is possible the most difficult economic moment in the history the Federal Republic. Recently Chancellor Scholz fired his Finance Minister Christian Lindner, (leader of the Free Democratic Party, FDP) his coalition partner, and in one fell swoop bringing to an end the ruling coalition, rendering the government a lame duck. This should help Donald Trump once he is inaugurated on 20^th January 2025 as German elections are slated for March later that year so the imposition of tariffs may be difficult to fight or get agreement on other issues favouring the United States.

The Germany economy could be in for a bit of a bruising come 2025. If Donald Trump does implement his tariffs, experts suggest the cost to economic output could be circa 1%, and with the German economy predicted to grow by zero percent in 2025, this is bad news all round. Furthermore, some experts are predicting that the German economy (dependent on exports) could shrink by as much as 1.5% in 2027 and 2028. 

Total exports to the United States from Germany in 2023 were valued at USD171.65 Billion, the most important of which were:

1. Vehicles: USD36.76 Billion
2. Machinery, Nuclear Reactors and Boilers: USD34.4 Billion
3. Pharmaceutical Products: USD USD27.51 Billion
4. Electronic Equipment: USD17.1 Billion
5. Optical. Photo, Medical Apparatus, Technical: USD12. 67 Billion.

Germanys trade surplus with the United States has been rising since 2020, and data released showed it reached record levels in 2023 of €63.3 Billion. However, analysts have advised that if tariffs are levied between 10% – 20%, exports to the USA could drop by as much as 15%, and Donald Trump with his slogan “America First” will definitely have Germany in sights.

2. France

Ironically, the re-election of Donal Trump as the 47^th President of the United States of America, will strengthen French President Macron’s resolve to build a more autonomous Europe. President Macron is also perceived out of all the European leaders to have at least a half decent relationship with President elect Trump (apart from Premier Victor Orban of Hungary who is deemed to be closer). However, France is in both political and economic turmoil, with Marine Le Pen having brought down Prime Minister Barnier’s government and possibly pushing President Macron into resigning, plus a budget deficit of 6% of GDP and a Debt to GDP Ratio* of 112%.

*Debt to GDP Ratio – This is a metric that compares a country’s public debt to it Gross Domestic Product (GDP). It is a reliable indicator of a country’s ability to repay its debts by comparing what the country owes with what it produces. 

Total exports by France to the USA in 2023 was USD45.54 Billion, (just under 25% of what Germany exports to the USA) the most important of which are:

1. Machinery Nuclear Reactors and Boilers: USD8.3 Billion
2. Beverages Spirits and Vinegar: USD4.11 Billion (wine circa USD2.25 Billion/ Euros2.14 Billion)
3. Pharmaceutical products: USD4.04 Billion
4. Aircraft and Spacecraft: USD3.97 Billion.

Estimates vary, but one thing is certain, a Trump tariff imposed on French exports to the USA will be particularly damaging to the economy at this time. In 2019, the scope of tariffs were limited to France Germany and Spain, as they were the three counties involved in the Airbus consortium and was part of a dispute on aviation between the European Union and the United States. 

Elsewhere, the French wine industry is still scarred from the harsh 25% tariff imposed between October 2019 to March 2021, and producers are wondering what minefields lay ahead in the export arena to the United States. Interestingly, Trump himself is a wine producer, so the industry may well expect a tariff of a minimum of 10%. 

In light of the present economic and political debacles, plus the fact that France is spending under 2% on defence (expected to exceed 2% by 2029), President Macron can only hope he will retain sufficient authority to negotiate an equable deal with President elect Donald Trump.

3. Spain

Experts are suggesting that a Trump administration could have both positive and negative effects on the Spanish economy. In many eurozone countries, vehicles, machinery, pharmaceutical goods expect to be at the top of a Trump administration tariff hit list. However, Spain is fearful for its olive oil industry as it may take a significant hit as it did in Donald’s Trump’s first administration. In 2017, the Trump administration levied tariffs on Spanish olives, the reason being subsidies directed at Spanish olive producers through CAP (Common Agricultural Policy) would cause harm to American producers of the same. The tariffs were between 30% and 44% on Spanish black olives being anti-subsidy and anti-dumping duties. 

Spain is the largest olive oil producer in the world and currently their largest export market is the United States, which as of 2023 accounted for 15.7% of Spain’s total olive oil exports. Over the last five years, data released shows that Spanish table olives resulted in a loss of Euros260 Million (USD273 Million) due to tariffs being imposed in President Trump’s first administration, so a second set of tariffs could be a financial disaster for the industry. Elsewhere, the three top exports from Spain to the USA are:

1. Machinery Nuclear Reactors and Boilers: USD2.96 Billion
2. Mineral Fuels, Oils Distillation Products: USD1.96 Billion
3. Electrical and Electronic Equipment: USD1.82 Billion.

On the positive side, Donald Trump’s policies have encouraged capital outflow and foreign investment in foreign countries, with a stable real estate market. Spain is ideal due to its rich culture, a desirable location and attractive property prices, and this could definitely interest US investors looking to diversify their portfolios. A strengthening dollar could see a surge in US tourism with Spain already being a favoured destination for American tourists. 

Donald Trump’s mantra of ‘America First’ means he is always open to deals that favour the USA, so Spain could renegotiate trade deals, but there is one blip on the horizon apart from tariffs. Spain only spends 1.24% of GDP on defence and this, everyone knows, presses all of Trump’s buttons. Spain may well be forced to up their defence expenditure in order to gain concessions on tariffs.

4. Hungary

Hungary is mentioned on this list as their Premier Victor Orban enjoys a cordial relationship with Donald Trump, and whilst Orban voices his approval of Russian leader President Putin, Donald Trump is certainly fascinated by him. Indeed, when many of the leaders in the European Union were condemning Orban for his pro-Russian stance Donald Trump was heaping praise on him.

However, when it comes to the economy on Hungary,  experts suggest that Trump-2 administration could spell bad news, where his economic policies could add to inflationary risks due to a weak currency (Forint). The economy of Hungary is very “open” economy and is particularly linked to the European auto sector which, in the event of tariffs, could put the Forint under renewed pressure, thereby precluding future rate cuts. Hungary also has very close ties to China, and back in April 2024 borrowed €1 Billion from Chinese Banks to finance energy and infrastructure projects. On top of that, in September 2024 Premier Orban announced that Chinese firms had pledged €9 Million of investment in Hungary.

How the China link will play out with President elect Donald Trump, who is an obvious supporter of Orban, time will only tell. There are many imponderables with Hungary, but due to their personal relationships these problems may well be sorted out on a person to person basis.       

Final thoughts

There are, as mentioned previously, 27 member states in the European Union, and their President Ursula von der Leyen, who is in her second term, must keep the union unified in the face of the policies which will be emanating from the White House post 20^th January 2025. The President may well find this difficult because, as in President elect Donald Trump’s first administration, many Eurozone countries beat a path to the door of the US administration hoping to find favour with President Trump and do their own bilateral deals. It is felt the same will happen the second time around. 

Whilst the European Commission has sole responsibility for trade deals for all members, there are smaller options that countries can negotiate with Washington. Furthermore, Trump may pick out Germany and France for special tariff consideration as they are the two biggest economies in the eurozone (and therefore have the biggest influence within the union), plus they both have their own current economic and political problems. Imposing or threatening to impose tariffs on these two countries could be the economic dark cloud that brings the EU in line regarding defence spending. The leaders of the European Union, and their prime ministers and presidents, will be waiting with bated breath as to what President Trump will decide come his ascension to the White House for the second time.

An amazing political comeback by ex-President Donald Trump will see him re-enter the White House on Monday 20^th January 2025, and if he sticks to his promise that he will impose tariffs on many of the imports into the United States, the cost estimate by experts to the United Kingdom will be billions of pounds. The fact that Labour sent key electioneering staff to help the Democratic campaign, and Foreign Secretary Lammy’s tirade against President elect Trump, calling him  “Neo Nazi Sociopath”, may well impact on future trade negotiations. 

Figures released by analysts suggest that the United Kingdom could be hit to the tune of £20 Billion should President elect Trump impose tariffs of 10 to 20% on the United Kingdom’s exports to the United States. After the European Union, the United States is Britain’s largest trading partner and, up to the year ending 30^th June 2024, the UK delivered exports to the United States to the value of GBP188.2 Billion. The hardest sector to be hit by tariffs will be pharmaceuticals and medical goods (largest export sector to the United States), followed by the automobile sector (cars and parts) and aviation parts such as jet engines. It must also be remembered that the whisky producers in Scotland are highly dependent on their exports to the United States.

If tariffs are introduced, figures released by the Centre for Economics and Business Research, suggest Britain’s economic output could be trimmed by just under 1% by the end of his presidency in 2023. Furthermore, figures released show a GDP growth in Q3 in the United Kingdom slowing to circa 0.1% and further headwinds from tariffs could severely impact economic growth. Data released by NIESR (National Institute of Economic and Social Research), show that a trade war between the United States and the United Kingdom could reduce growth in the UK by 0.7% in President elect Trump’s first year and 0.5% in his second year.

If GDP does fall in line with the above estimates from the NIESR this will make life difficult for Chancellor Reeves to meet her “Stability Rule”* which will raise the prospects of further taxation, a policy the current government carries out with great gusto and relish. Furthermore, President elect Trump’s protectionist policies may well according to experts put upward pressure on the cost of borrowing. Experts suggest that under President Trump the impact on bond yields could negatively affect UK borrowing costs, which in turn could dampen activity putting further strain on the UK’s public finances. 

* Chancellor’s Stability Rule – The requirement is that the current budget (tax revenues minus day to day spending) be in surplus by 2029/20230.

President elect Trump, in his campaign America First slogan, will continue his threats to pull out of NATO if Europe and Great Britain do not increase their defence spending to 2.5% of GDP, with a rumoured 3% of GDP apparently going to be tabled once he is in the White House. The new Defense Secretary Peter Hegseth is not a big supporter of the Ukraine and has branded NATO members “As a group of self-righteous and impotent nations using America as an emergency number”. The United Kingdom may well have to adjust their defence spending upwards if that’s what it takes to keep the United States supporting Ukraine, otherwise Prime Minister Starmer’s vow to back Ukraine will mean nothing.

Elsewhere, the Labour government is hoping for a more constructive relationship with China. Indeed, Foreign Secretary Lammy, who is notoriously anti-Trump, has already visited China confirming that the new government will have greater cooperation on issues such as trade, A1 and climate. However, it is obvious to all that President elect Trump’s views on China are diametrically opposed to those of Foreign Secretary Lammy and the Labour government. If the United Kingdom are looking to build trade deals with China whilst President elect Trump is looking to hit China with 60% tariffs, it will be interesting to see how far the UK/China labour policy pans out. 

On the climate front, the energy secretary David Miliband has announced that Great Britain is on its way to becoming a green energy “superpower”. He has promised there will be billions invested in the United Kingdom’s green energy programmes, and he has lifted a ban on new onshore turbine wind farms and has given his approval on to build a mass of solar energy farms. In the meantime, President elect Trump has moved totally in the opposite direction, and whilst labour is announcing a break from oil and gas, in his first presidency Trump took the United States out of the Paris Agreement (climate agreements) and will more than likely repeal any of the outgoing President’s green policies that did not make it over the line. If the United Kingdom is looking for any help from the United States in their green policies, Mr Miliband has taken a leaf out of Lammy’s book and called the President elect a moron, making it unlikely that they will come to any kind of agreement.

Donald Trump will be inaugurated as President of the United States on Monday 20^th January 2025 and from then on the possibility of tariffs becomes a reality for the Labour government. However, there is the potential to avoid tariffs, which according to experts is undesirable for the government and that is a free trade agreement. In his first term as President, Trump pursued this policy much more proactively than the current incumbent of the White House. Such an agreement would make UK exports cheaper than those hit with tariffs, but the big sticking point remains food standards and it will be up to the Labour government to decide what is best for the United Kingdom.

With Donald Trump decisively beat Kamala Harris in the race for the White House, analysts and experts alike suggest that there will be far reaching economic consequences for the rest of the world. It is suggested that if the President elect only enacts a small portion of his election promises, such as financial demands on NATO partners, deregulation and increased oil drilling and tariffs, the negative effect on inflation, government finances, interest rates, and economic growth will be felt by countries across the world. In Congress, the Republicans have already secured the Upper House (the Senate), and if predictions are correct they could secure the Lower House (House of Representatives), which will make it easier for the President Elect to push through his policies.

One of Donald Trump’s key economic pledges is tariffs, which includes a 10% to 20% tariff on all imports into the United States except for China who will be hit with a 60% tariff on all exports to the Unites States. Experts advise that of all the policies, the “Trump Tariff” policy is likely to have the largest global impact as they lower growth for exporters, have a negative effect on public finances and inhibit global trade. The President elect said during his campaign for the White House “Tariff” is his favourite word and is “the most beautiful word in the dictionary”. Interestingly, and supporting his own stand on tariff’s, Trump took the unusual step of threatening John Deere, (the agricultural manufacturer) with a 200% tariff if they moved production to Mexico. 

Below is an overview by experts on selected countries in Latin America as to what effects the economic policies of President elect Trump will have on their economies.

Latin America

The re-election of ex-President Donald Trump may well bring important and significant challenges to Latin America. The President elect has already stated he will place a 60% tariff on all Chinese exports to the United States, so how will he respond to China’s growing influence in the region? Many South American countries find it difficult to overlook China’s direct economic commitments, so the Trump administration may well have to prioritize regional economic policy.

1. Brazil

On Wednesday 6^th November 2024, when it was announced the Donald Trump would be re-entering the White House, the Brazilian finance minister Mr Fernando Haddad said, “The world woke up on Wednesday more tense than it was yesterday”. Indeed, such remarks were echoed to an extent in other parts of the government where certain factions were advocating a delay in planned public spending cuts, due to the expected ripple effects of a Trump administrations effect on global financial markets. 

However, many analysts in Brazil feel that a Trump administration will create a global liquidity vacuum, so there must be immediate implementation of fiscal measures (spending reductions of circa R$40 – R$60 Billion (USD7 – USD10.5 Billion) ). Furthermore the protectionist policies of the incoming President including tariffs could well jeopardise Brazilian industrial exports to the United States. China and Brazil have vey close economic ties and if the protectionist policies of the incoming administration slow down the Chinese economy, the agribusiness sector of Brazil could find itself in trouble. Some experts advocate that Trumps policies could keep inflation high in the United States and will therefore keep interest rates high in both countries, which may well lead to less direct foreign investment in Brazil. 

2. Mexico

President elect Trump has already made his feelings and intentions towards Mexico exceptionally clear. At a rally In North Carolina, on the very last day of campaigning Donald Trump made a precise policy decision to his supporters. He announced that Mexico’s President Claudia Sheinbaum would be the receiver of one of his first telephone calls in which he would advise that if she did not stop the onslaught of drugs and criminals coming into the United States, he would impose an immediate tariff of 25% on everything coming out of Mexico bound for the United States. 

Indeed, former foreign minister Jorge Castaneda said that a Trump administration was a nightmare scenario for Mexico as the President elect’s victory was partly due to his standing on and one of his chief promises to end illegal immigration across the southern border of the United States. Early indications of looming problems for Mexico was when the presidential race was called for Trump the Peso hit its lowest level against the US Dollar since 2022 at 20.8 to the dollar. 

Furthermore, Mexico for some years has been enjoying a “Nearshoring bubble” and as experts line up to say that reshoring and protectionism is back, several companies in America have paused planned investments in Mexico. This includes the President elects close friend and confidant Elon Musk, who owns Tesla. It is well known that the President elect hates trade surpluses and Mexico in 2023 had a trade surplus of USD152 Billion, the second largest deficit after China. 

The Mexican economy is driven almost exclusively trade with 83% of its exports going to the USA. Some economists are warning that even a small increase in tariffs could lead to a rise in unemployment, a rise in poverty, reducing Mexico’s long-term economic growth and prompting more Mexican nationals to migrate to the United States. Analysts point to the fact that few world economies are more tightly bound than Mexico and the United States with some experts predicting that that under a worst-case scenario the economy of Mexico could fall into recession, the Peso will depreciate, and inflation will rise. 

3. Argentina

President Javier Milei was the first foreign leader to meet President elect Donald Trump after his stunning victory in the 2024 United States presidential election. President Milei also said of President elect Trumps victory “that the forces of heaven were on our side”. Indeed, following the election of ex-President Trump the Argentinian financial markets enjoyed a significant upturn stemming from the anticipated closeness of President elect Trump and President Milei. Experts suggest that as an ally of the current Argentinian administration, President elect Trump, as he did in his first term, he will promote US investment in Argentina’s oil sector.

Further signs of optimism after a Trump victory was on 6th November 2024 where Argentinian US Dollar denominated bonds enjoyed gains in early trading plus the country’s risk index dropped to its lowest level since 2019 at 872 basis points. This index is indicative of what premium investors demand to hold local bonds compared to equivalent US debt and the S&P Merval, which is Argentina’s main stock index rose by more than 3%. 

The last time Argentina had a right wing government (President Macri 2015 – 2019) the country enjoyed a close relationship with the Trump administration, who were instrumental in securing an IMF loan in 2018 of USD44 Billion. Many commentators see a Trump administration as beneficial to Argentina, which has already been good for Argentinian assets, but long-term implications, as always, remain uncertain.

4. Colombia

A big problem for the Trump administration will be Colombia, where President Gustavo Petro and his administration have been openly critical of the United States’ role in global affairs. President Petro was one of the last Latin American leaders to congratulate Donald Trump on his re-elevation to the White House. In fact, he only acknowledged the ex-Presidents victory on X (formerly twitter). He further indicated his feelings against America’s pro-Israel stance and their blockage of Venezuela, showing ideological affinity with Cuba.

The Columbian’s President stand on Gaza and Israel has deepened an already strained relationship with Washington, and he furthermore severed diplomatic ties with Israel, accusing them of Genocide. Columbia also represents the largest source of cocaine entering America, and President Petro has not been as enthusiastic regarding the eradication of its production. Donald Trump has a zero tolerance drugs agenda, and the United States is the largest donor of foreign aid to Colombia which maybe under threat in the future.

The Colombian government are presently trying to complete a deal with the United States for a USD40 Billion climate change investment plan, and if they cannot secure this agreement before the 20^th January 2025, experts suggest that any negotiations with the Trump administration would come with substantial caveats, if indeed an agreement could be reached. An alternative could be China, but experts agree that would only increase the current tensions, and the outlook for Columbia’s economy maybe bleak unless President Petro comes to some agreements with President elect Trump’s administration.

5. Peru

China is Peru’s main trading partner, and if President elect Donald Trump carries out his threats regarding a 60% tariff on all China’s exports to the United States, this could have an indirect negative effect on the economy. The intended tariff on China’s exports to America would mean a potential slowdown in the country’s economy which in turn would translate into lower prices and falling demand for Peru’s exports of copper, iron ore and other raw goods.

Data released by Peru’s Foreign Trade and Tourism Ministry show that between January and August 2024, China accounted for USD16.7 Billion or 36% of Peru’s exports of which total mining exports accounted for USD12 Billion or just under 75%. 

Although Peru export quite a high volume of products to the United States, these are products they are happy not to protect, and according to data released by experts with projections up to 2029 under a Trump administration exports could only fall by 1%. There are also opportunities for Peru as, while China may be economically harmed by tariffs, Peru could step in with more exports such as textiles and safety glass for cars. It should also be noted that China’s President Xi recently inaugurated a USD1.3 Billion mega port (Chancay) in Peru which experts suggest will become South America’s biggest shipping hub. 

6. Paraguay

Regional experts on South American countries suggest that the election of ex-President Donald Trump opens the door for closer relations between Paraguay and the United States. At a time when a number of South American countries are aligning themselves more with China, Paraguay can present itself as a strong ally to the United States. Under the current President Santiago Pena, Paraguay has probably the most effective cabinet and administration in its history.

In contrast to a number of other South American countries, Paraguay maintains diplomatic relations with Taiwan, has been an ally of Ukraine and a vocal supporter of Israel in their current war in Gaza. Such a political stance should be music to the ears of President elect Trump, and it is therefore essential for economic growth that Paraguay catch the eye of the President elect at a very early stage. Paraguay is uniquely situated between Santiago, Sao Paulo, and Buenos Aires, giving the country the opportunity to become a regional hub. 

There is also considerable room for economic growth between the United States and Paraguay: where in 2023 bilateral trade was worth USD3 Billion, whereas Columbia’s was circa USD39 Billion. Paraguay also enjoys a number of sources of green energy, and the country’s ability to produce substantial amounts of green hydrogen through harnessing electricity from their two hydroelectric dams (Itaipu and Yacyreta). Global demand for green hydrogen is expected to dramatically increase in the coming years driven by international commitments to reduce carbon emissions. Paraguay appears to be well placed to benefit economically from a Trump presidency, hopefully President Pena, whilst a recognised ally of the United States, can become a close friend of President elect Donald Trump, thereby enhancing closer economic ties.

Final thoughts

There are some experts suggesting that the Trump victory actually presents a unique opportunity for the countries of Latin America. As many countries are confronted by political instability, climate change, and economic challenges, the leaders should follow mechanisms of a collaborative nature to create one voice. They could then adopt strategies for instance that could see them acting as a regional bloc for trade purposes, help address the crisis in Venezuela, attack climate change and organised crime together. Whilst a Trump presidency often creates a polarising effect, this time he might bring the countries of Latin America together.