President-elect Donald Trump returns to the White House, what does the world expect? New opportunities for China and Europe have opened?

With President-elect Donald Trump back in the White House, his economic campaign ideas could soon become reality. The world is expecting “America First”; new points on tariffs, trade wars and the explosion of cryptocurrencies.

Donald Trump at a campaign rally in Greensboro, North Carolina, November 2. (Source: Reuters)

After the US election (November 5 - local time), the world is looking forward to a new presidential term of Mr. Donald Trump. The Republican Party also took control of the US Senate, which will make it easier for Mr. Trump to pass his economic ideas.

Promise of big tariffs

According to DW , Mr. Trump's victory will create a new and difficult turning point for the global economy.

During his campaign, many of his economic ideas were similar to those when he first took office.

However, with this comeback, the public is more sophisticated and Mr. Trump also has more experience and determination to promote the economic ideas he has set out.

He has promised to impose tariffs of 10-20% on all goods imported into the world's largest economy. He has even proposed tariffs as high as 60% on goods made in China.

At the same time, he has promised to bring manufacturing back to America, cut taxes and deport millions of illegal immigrants.

These promises were enough to convince many voters struggling with rising food and housing prices that they would be better off supporting Mr. Trump economically.

How are global markets reacting?

The policies of the new White House owner will have a big impact on the US economy and will also have a big ripple effect around the world.

Ahead of the election, businesses around the world were taking into account a Democratic or Republican victory and making contingency plans.

Now that the Republicans have won by a landslide, the markets are reacting strongly.

Stock markets in Asia, the first to open after the election, had mixed reactions. Japan's Nikkei and Australia's S&P/ASX 200 rose, while Hong Kong's Hang Seng Index fell. Mainland Chinese stocks were little changed, and European markets remained muted.

Meanwhile, the US market greeted Mr Trump's victory with both optimism and anxiety.

The S&P 500 rose 2.4%, the Dow Jones Industrial Average rose 3.4% and the Nasdaq Composite rose 2.7%. All three indexes hit record highs on November 6, while the MSCI world stocks index rose 1.3%.

In contrast, no increase was recorded in the bond market when the 10-year US Treasury bond.

The new White House chief has promised to make the US the “cryptocurrency capital of the planet” by opening up the market more. His support for cryptocurrencies has given hope to the industry in the US.

Bitcoin - the most popular cryptocurrency - hit a record high of more than $75,000 (69,800 EUR) after news of Mr Trump's victory.

Bitcoin - the most popular cryptocurrency - hit a record high of more than $75,000 (69,800 EUR) after news of Mr Trump's victory. (Source: Reuters)

As Bitcoin surges, some other currencies are underperforming against the USD. But the opposite is happening in the currency market.

Many currencies fell against the greenback on November 6, with the Mexican peso posting its biggest decline in three months. The currency is particularly vulnerable to new tariffs from the world’s largest economy, which is the country’s largest trading partner.

A rising dollar will make US goods more expensive relative to goods from other countries.

Europe's new fears and opportunities

In addition to trade and tariff difficulties, some Eastern European countries are concerned that Mr. Trump could weaken vital US support for the North Atlantic Treaty Organization (NATO) . This fear, along with worries about the future of the military campaign in Ukraine in particular, has sent many European currencies plummeting, including the Hungarian forint.

"Donald Trump's second term will be a bigger challenge for German and European industry than his first term. Europe must especially 'keep an eye' on the new White House boss's tariff announcement ," warned Thilo Brodtmann, head of the German Mechanical Engineering Industry Association .

Tariffs will strain global trade and could force China and European countries to develop their economic strengths further. This could be a new opportunity for these countries.

Source: https://baoquocte.vn/tong-thong-dac-cu-donald-trump-tro-lai-nha-trang-the-gioi-mong-cho-dieu-gi-co-hoi-moi-cua-trung-quoc-va-chau-au-da-mo-292844.html