Donald J. Trump, tycoon and ex-TV star, has just become the 47th president of the United States after defeating incumbent vice-president, Kamala Harris. Trump and Harris obtained 295 and 226 electoral college votes respectively, signaling an overwhelming victory by the magnate and going against prediction polls that indicated a seemingly even race by both candidates. Trump obtained more votes in almost every state with respect with the 2020 election, and, more surprisingly, he became a favorite among minorities, with a 13% increase in votes by male Latinos. Furthermore, the Republican Party obtained the majority of seats in the House and Senate.
World leaders rushed to congratulate the president-elect. Ukraine’s Zelensky, Israel’s Netanyahu, and Hungary’s Orbán, among others, warmly offered their congratulations to Trump. On the other hand, Putin gave his good wishes only indirectly, through mutual friends, and China’s Xi Jinping did so through its foreign minister. Kamala Harris, after a brief period of absence from the media, spoke publicly to her supporters about accepting the results of the election, already having personally congratulated Trump and his team.
The election had immediate impact on financial markets: American indexes rose, the dollar strengthened, and government bond yields sky-rocketed after the results were announced. Analysts believe that investors are preparing for more government spending, lighter regulation, bigger deficits and an accelerated growth under Trump. The dollar’ renewed strength against world currencies like the renmimbi and the euro are likely related to Trump’s plans to increase tariffs to protect the American industry. On a side note, Fed officials are expected to cut interest rates after their meeting of today.
Donald Trump embraces illiberal policies that many deem threatening to the American economy and the geopolitical stability of the world. His plans include a high tariff, low taxes approach to the economy, an openly aggressive stance against illegal immigration, and an ambiguous stance in international defense matters. At the end of the next four years, the American people will know whether Trump delivered on his promises of “Making America Great Again”, did a mediocre job, or engaged in ill-inspired policy-making and the erosion of American institutions.
Author: Luis Cabezas