On 6 November 2024, the race to become the next president of the United States was called and Donald Trump’s return to the Oval Office was confirmed.
Having previously served as the 45th US president, Trump is set to become the 47th too at his inauguration in January next year, making him both the predecessor and successor to Democrat Joe Biden.
The Republican candidate surpassed the threshold of 270 electoral votes that he needed to claim victory over his Democrat counterpart, Biden’s vice president Kamala Harris.
Throughout his time in office from 2017 to 2021, and during his most recent presidential campaign, Trump has appeared committed to aggressive trade policies, specifically aimed at reducing reliance on international markets. Earlier this year, the new president-elect claimed that he would impose more tariffs on the import of Chinese goods if he were to win the November election.
He told Fox News: “Obviously I’m not looking to hurt China. I want to get along with China. I think it’s great. But they’ve really taken advantage of our country.” In that interview, he alluded to the fact that he was considering tariffs of over 60%.
Over the course of Trump’s previous term in office, a trade war between the US and China escalated – one that his comments this year suggest may well continue over the next few years.
In addition to tariffs on China, Trump is expected to impose a 10% tariff on imports from all countries and has warned that members of the European Union are “going to have to pay a big price” for not buying enough American exports.
In March 2024, reports claimed that companies relying on global supply chains had already begun planning for the potential increase in tariffs should Trump be elected, with some companies exploring opportunities in Mexico as a means of transporting goods from China to the US.
When it comes to manufacturing, Trump’s policies remain focused on reshoring. By encouraging domestic production through lower corporate taxes and expanded incentives, he aims to bring jobs back to US soil and reduce trade deficits. However, some may argue that this protectionist stance, reminiscent of his 2016 term, could strain industries reliant on foreign suppliers and lead to retaliatory tariffs.
Trump has historically prioritised infrastructure projects to boost logistics efficiency, and this focus is expected to continue. His administration may increase spending on key infrastructure improvements, potentially benefitting the logistics and construction sectors, although his firm stance on immigration could be cause for concern in terms of labour availability.
Ultimately, Trump’s policies may well benefit US manufacturing and logistics, but the impact of his proposed tariffs on international supply chains remains to be seen. One thing is certain: Trump’s second term will be an interesting one to follow for individuals and businesses around the world.
