Donald Trump after running for the presidential candidate in 2016 knew what he had to do, agendas like making America great again, providing employment and boosting economy underlined his campaign. Things appear to be a little different in 2019, as the next presidential election is a few months away, the world is preparing itself to enter into a new possible recession. A week ago, stock markets took a deep dive when Trump announced to implement further tariffs on the Chinese goods. Although a couple of days later, Trump decided to halt unilateral tensions with China and postpone further actions beyond Christmas. The notion to standby was a welcome action on the side of Trump because it gave a relief to the uncertainty prevalent in the international business community, who were preparing for another shock.
The respite from the economic gloom was short lived as the stock markets continued to show uncertainty while the exchange rates of currencies showed some relief signs. Amidst all this, Trump seems to be a little worried because he has urged his supporters and non-supporters to vote for him in 2020 in order to make sure a strong economy and lesser unemployment. This shows the prevalent uncertainty. Economy had always been a strong point in the election campaign of Trump, if anything bad happens and investors face some economic gloom then it’s going to hurt the future endeavours of Trump.
Meanwhile, Trump continues to criticise the Federal Reserve for not easing the interest rate to encourage more investment in the businesses. However, major economists opined that the Chinese trade war would cause more damage than good. Therefore, the American administration has to decide if it is willing to let go of the Thucydides trap or not. China itself is facing some internal and external issues in the shape or Hong Kong pro-democracy protests and the South-China sea bid.
Above everything, two nuclear nations are willing to take a piece from each one of them, Pakistan and India, as India has stripped the status of disputed territory autonomy in a unilateral move which Pakistan dislikes because UN has called the territory Kashmir a disputed one between India and Pakistan. This issue also calls for Chinese stakes; therefore, for a global power and its president, a lot of things are on the palate. Definitely, the next few months would shape the re-election campaign of Trump.