New Delhi. What Donald Trump’s second term in the White House will mean for India and other Asian countries after his historic victory in the US presidential election is a matter of debate. According to Moody’s, an economic rating agency, India can benefit from this shift in power.

China’s problems will increase
According to the Global Rating Agency, this change could be due to increasing tensions between the US and China and possible restrictions on investments in key sectors. Asia-Pacific trade and investment flows could move further away from China as the US increases investment in strategic sectors, according to Moody’s. This will have a negative impact on China’s economy and lead to a decline in regional growth. However, India and ASEAN countries could benefit from this change in American policy.

Possibility of changing American policy
According to Moody’s, there is a possibility of significant changes in American policy under the Trump administration. Important changes may occur, particularly on tax, trade, climate and immigration issues. This will be different from the Biden administration’s approach.

Information on the continuation of the tax reform
During his campaign, Trump signaled his intention to pursue tax reform by making the Tax Cuts and Jobs Act of 2017 permanent, reducing corporate tax rates and providing income tax relief. These initiatives are accompanied by comprehensive tariffs, including a high levy on Chinese imports. This is likely to increase the federal deficit.

Possibility of relaxing the rules
Moody’s also forecasts the possibility of protectionist trade policies under the Trump administration that could disrupt global supply chains and negatively impact sectors that rely on imported materials and goods, such as manufacturing, technology and retail.

Keywords: Donald Trump