Cyceon has repeated since June 2015 that it would be wrong to underestimate Donald Trump. Sworn in as the 45th President of the United States on January 20, 2017, his administration has already taken two major decisions on its first full workday at the White House on January 23, 2017.
President Trump withdrew the United States from the Trans-Pacific Partnership agreement (TPP) signed with 11 other Asian countries and one of the two major achievements abroad of his predecessor Barack Obama in addition to the Nuclear Deal with Iran. “Withdrawing from TPP is a serious mistake for America’s economy and strategic position in the Asia-Pacific. It abdicates US leadership in Asia to China,” warned John McCain, a prominent Republican Senator and a former presidential candidate for the GOP in 2008.
Trump also made clear his intention to renegotiate the North American Free Trade Agreement (NAFTA) that entered into force in 1994 and promised Unions that he will work at bringing jobs back to America. The encouraging congratulations of Paul Ryan, leader of the Republican majority and Speaker in the House of Representatives, indicated that Trump is currently enjoying the Hill’s support needed to fulfill his campaign pledges.
After the failure of the Transatlantic Trade and Investment Partnership (TTIP), the withdrawal from the TPP and the upcoming renegotiation of NAFTA constitute a severe halt to the globalization of trade that will likely increase uncertainty on the financial markets particularly in Asia.