Donald Trump is going to become the next President of America after a close contest in the recently held presidential elections, according to Moody’s Ratings, India and other Asian countries will benefit due to the increasing tension between US-China and possible investment restrictions in strategic sectors. Expected to happen.
“In the Asia-Pacific region, trade and investment flows could be diverted away from China as the US tightens investment in strategic sectors, which would negatively impact China’s economy and consequently slow regional growth. However “This change could benefit India and ASEAN countries,” the global rating agency said.
The global agency had expected a significant shift under the Trump administration on fiscal, trade, climate and immigration issues, moving away from the approach of current US President Joe Biden’s administration.
The rating agency said Trump may have both legislative and executive avenues to advance his agenda on every front.
It further added that as a candidate, Trump promised tax reform with plans to make the 2017 Tax Cuts and Jobs Act permanent, lower the corporate tax rate, and implement income tax relief. These initiatives, along with targeted and sweeping tariffs, including massive tariffs on sugar imports, are expected to increase the federal deficit.
It highlighted that under Trump, the US will pursue a protectionist trade policy, which will be more disruptive and increase risks to global growth.
“Protectionist measures could disrupt global supply chains and negatively impact sectors dependent on imported materials and goods, such as manufacturing, technology and retail,” it said.
The credit rating agency said Trump’s trade policy approach would likely have an immediate impact on the manufacturing sector, although a divided Congress could slow or adjust the scope of such measures.
US climate initiatives are also likely to see a reversal as Trump seeks to boost fossil fuel production under the banner of “American energy dominance”.
Decreased funding for clean energy projects and a potential withdrawal from the Paris Agreement will weaken US commitments to reduce greenhouse gas emissions.
While federal support for green technologies may be reduced, private sector initiatives and state-level mandates, particularly in renewable energy, are expected to partially offset this shift.
Some industry experts believe that market-driven growth in wind and solar energy may continue, as these energy sources become cost-competitive in many parts of the country.
“This change would result in renewed support for the fossil fuel industry, reduced funding for clean energy and green technologies, and loosening of environmental regulations, including the Environmental Protection Agency’s efforts to reduce emissions in the electric and auto sectors.” It’s likely the Trump administration will again withdraw from the Paris Agreement and reverse commitments to meet net-zero greenhouse gas emissions by 2050, the agency said.
According to Moody’s, on the regulatory front, Trump is expected to adopt a lighter approach, which would include relaxing rules for small and medium-sized banks, which would potentially reduce their capital requirements but also protect creditors from higher risks. Will put it in.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
