Donald Trump’s return to the presidency of the United States of America in 2025 was marked by a series of single-minded economic initiatives and assertive (many say destructive) foreign policies. Upon assuming office, he issued sweeping executive orders aimed at deregulation, imposed unbelievable high tariffs on imported goods, and adopted a foreign policy centered around ‘America First’.
Trump administration’s economic policy, including a 10% tariff on all imported goods and a 60% tariff on Chinese products, were designed to bolster domestic manufacturing and reduce trade deficits. Additionally, Trump’s foreign policy sought to recalibrate America’s relationships with global powers, emphasizing bilateral agreements and a more confrontational stance toward traditional allies.
However, execution of these policies has been met with momentous challenges. The aggressive tariff measures have led to increased costs for US consumers and businesses, with many industries facing higher input costs and supply chain disruptions. Retailers are affected by the increased costs of imported goods, leading to higher prices for consumers. Moreover, imposition of tariffs has strained relationships with key trading partners, leading to retaliatory measures that have further complicated the global trade environment.
Trump’s first term was characterized by a focus on deregulation and tax reform, which contributed to economic growth and job creation. The administration’s policies were aimed at reducing regulatory burden on businesses and stimulating investment. Additionally, the first term saw a more engaged foreign policy, with efforts to negotiate trade deals and strengthen alliances. These policies contributed to a period of economic expansion and relative stability in international relations.
One of the most notable achievements of Trump’s first term was the facilitation of peace agreements in the Middle East, including the Abraham Accords, which normalized relations between Israel and several Arab nations. These agreements were hailed as significant diplomatic successes and were seen as a testament to the administration’s ability to broker peace in a historically volatile region. However, the current approach to foreign policy is less effective, resulting in strained relations with key allies and limited success in addressing global conflicts.
The Middle East situation has further deteriorated, with the Israel-Palestine peace deal unraveling. Following announcement of the agreement, Israel resumed military operations in Gaza, resulting in civilian casualties and undermining peace process. Trump administration’s inability to enforce the terms of agreement has raised questions about its effectiveness as a mediator and its commitment to upholding international agreements.
Similarly, the conflict between Russia and Ukraine remains unresolved, with little progress toward a peaceful resolution. Despite Trump’s claims of having a strategy to end the war, Russia has shown little interest in any meaningful negotiations. Trump’s approach to Russia has been characterized by a lack of clear objectives and inconsistent messaging, leading to confusion and a lack of credibility in its foreign policy.
Relations with the European Union are also tense, with policies alienating traditional allies. Imposition of tariffs and a more isolationist foreign policy has led to tensions with EU member states that are view US as an unreliable partner undermining transatlantic alliance having serious implications for global stability.
The trade war initiated by Trump has had far-reaching consequences, not only affecting relations with China but also impacting trade with other nations. Imposition of tariffs has led to retaliatory measures from other countries, disrupting global supply chains and increasing costs for US businesses. Industries that rely on imported materials are particularly affected, leading to higher production costs and reduced competitiveness in the global market.
Trade war with China has been particularly contentious, with both nations imposing skyrocketing tariffs on each other’s goods. While Trump administration has claimed that these measures are necessary to address unfair trade practices, the reality is that the tariffs have led to higher prices for consumers and have strained relations between the two largest economies in the world. China has not shown interest in resolving these issues through meaningful dialogue.
The impact of these policies on US economy has been significant. The International Monetary Fund has downgraded its forecast for US economic growth in 2025 to 1.8 percent, down 0.9 percentage points from January, and raised the probability of a US recession to 40 percent. The uncertainty created by trade policies has led to volatility in financial markets, with investors expressing concerns about long-term economic outlook.
Public opinion reflects these concerns. According to a Gallup poll conducted in January 2025, Trump’s approval rating stood at 47 percent, with a disapproval rating of 48 percent. This marks the second time Trump has entered office with a sub-50% approval rating, a distinction no other elected president has shared since Gallup began tracking in 1953. The partisan divide remains stark, with 91 percent of Republicans approving of his performance and only 6 percent of Democrats expressing approval. Independents show a 46 percent approval rate.
Trump’s approval ratings have been further eroded by its handling of domestic issues. Pardoning individuals involved in the January 6 Capitol riot and decision to withdraw from the international climate agreement have been particularly controversial. These actions have led to criticism from both domestic and international observers, further damaging the administration’s credibility. In the light of these challenges, it is vital for President Trump to reassess his approach to governance.
Re-evaluation of his advisors and the policies they advocate is necessary for Trump to ensure that the administration’s actions align with the best interests of the American people. Engaging in constructive dialogue with allies and pursuing diplomatic solutions to global conflicts should be prioritized over unilateral actions that are bound to isolate the United States.?
The United States has long been a beacon of democracy and a leader in promoting global stability. Resilience of the American people and the strength of its economy are testaments to the nation’s enduring values. To maintain its position as a global leader, the United States must embrace a foreign policy that fosters cooperation and mutual respect. By doing so, it can continue to contribute to the development of a rule-based international order that prioritizes peace, prosperity, and shared progress.
This requires sustained engagement with allies, investment in multilateral institutions, and a commitment to resolving conflicts through diplomacy rather than force.
A renewed focus on soft power through cultural exchange, humanitarian aid, and support for democratic institutions abroad will enhance America’s moral authority and reinforce its strategic interests. Only by reaffirming these principles can the United States counter emerging global threats, rebuild trust among nations, and lead the world toward a more stable, equitable, and secure future.
Copyright Business Recorder, 2025
The writer is MA, LLB, Advocate High Court, Visiting Faculty at Lahore University of Management Sciences (LUMS), member Advisory Board and Visiting Senior Fellow of Pakistan Institute of Development Economics (PIDE), is author of numerous books and articles on Pakistani tax laws. She is editor of Taxation and partner of Huzaima & Ikram. From 1984 to 2003, she was associated with Civil Services of Pakistan
The writer, Advocate Supreme Court, Adjunct Faculty at Lahore University of Management Sciences (LUMS), member Advisory Board and Visiting Senior Fellow of Pakistan Institute of Development Economics (PIDE), holds LLD in tax laws. He was full-time journalist from 1979 to 1984 with Viewpoint and Dawn. He also served Civil Services of Pakistan from 1984 to 1996. He has been studying since 1980 the linkages of narcotics trade with terrorism. He is author of many articles on the issue and two books, Pakistan: From Hash to Heroin and its sequel Pakistan: From Drug-trap to Debt-trap
The writer is a corporate lawyer based in the US with extensive expertise in financial regulations, including Virtual Asset Service Providers (VASPs), corporate governance, and global economic policies. He holds an LLM from Washington University in St. Louis and has completed the Management Development Program at the Wharton School. He has developed regulatory frameworks for North American and South American Financial Institutions and has consulted and trained bureaucrats of different regions. He can be reached at [email protected]
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