Share this content :
The U.S. 2024 presidential election results have surprised many, with former 2016 president Donald Trump securing a narrow victory. With only a small margin separating him from Democrat candidate Kamala Harris, this outcome wasn’t widely expected. The finance and marketing industries are gearing up for what’s next. Trump’s return to office had investors and finance and marketing experts worldwide looking back at his previous policies, which might reshape international finance marketing strategies again. In this article, we explore how a second Trump term could impact global markets and how the finance and marketing industries will adapt to the current administration’s stated policies.
During Trump’s first term, his administration implemented a protectionist stance on trade, which led to new tariffs, especially on goods from China. According to the U.S. Trade Representative, tariffs on Chinese goods reached nearly $550 billion, with reciprocal tariffs from China on American goods amounting to $185 billion. These tariffs disrupted international markets due to increased production costs and disrupted global supply chains.
With Trump back in the presidency, his administration will likely continue prioritizing trade strategies similar to those from his previous term. This could mean a continued focus on tariffs, impacting global production networks and shifting trade dynamics. Finance and marketing experts must reassess projections to pre-empt how these tariffs might alter demand patterns.
Stock Market Reactions and Volatility
Historically, finance and marketing industries have responded strongly to Trump’s policy announcements. After his win in the 2016 election, the U.S. stock market showed a quick positive rally, with the Dow Jones Industrial Average reaching a record high of 19,000 just days after his victory. Market analysts linked this response to Trump’s growth-positive policies.
However, his presidency also saw periods of market uncertainty, particularly during the trade disputes with China and the COVID-19 pandemic. According to the International Monetary Fund (IMF), global economic growth slowed from 3.7% in 2018 to 2.9% in 2019, partly due to rising trade tensions. With Trump back in office, market volatility could rise, and finance marketing professionals should closely monitor these global markets to adapt.
Impact on Currency and Foreign Exchange Markets
The U.S. dollar is often seen as a safe haven, meaning investors flock to it. However, political shifts, such as a change in U.S. leadership, can affect the dollar’s stability. For instance, the dollar strengthened following Trump’s 2016 victory as investors anticipated tax cuts and deregulation policies. As Trump returns back to office, naturally, investors are bracing for possible economic shifts. Finance and marketing experts in the foreign exchange sector should be on high alert, knowing that currency stability could shape global investment moves and pricing strategies.
Energy Policies and Global Oil Markets
In his first term, Trump focused on energy production, particularly oil and gas. His administration supported increased fossil fuel production and rolled back environmental regulations to boost domestic oil and gas output. According to the U.S. Energy Information Administration, this made the U.S. a net exporter of oil and gas by 2019, affecting global energy markets by increasing supply and reducing prices.
We can expect similar energy policies in his second term, as increased production would drive down global prices—-particularly impacting oil-exporting regions like the Middle East, Africa, and South America. For finance marketing experts in the energy sector, staying on top of these shifts is crucial.
Focus on Deregulation and Corporate Tax Policies
Trump’s tax reforms in 2017 reduced the federal corporate tax rate from 35% to 21% through the Tax Cuts and Jobs Act (TCJA), a significant change for U.S.-based and multinational companies. This lower tax rate made America attractive for corporate operations, encouraging investment and boosting stock prices in certain sectors.
During his second presidential campaign, Trump proposed lowering the current 21% tax rate to 15%, keeping the U.S. a prime spot for business growth. For finance marketing experts, this means tracking how tax perks affect companies’ choices on spending, operations, and expansion. Lower corporate taxes could increase investments and expansion, potentially boosting U.S. stocks in global markets.
Investment Trends and Economic Policies
U.S. elections affect worldwide investor mood, and Trump’s policies changed international capital flows. During his first term, foreign investments in the U.S. increased due to strong market performance and favorable tax changes. The Federal Reserve reported a large increase in foreign-held U.S. assets, showing confidence in the U.S. economy. However, trade disputes and rapid policy swings caused investors to take a “wait and see” strategy to weigh risks and returns.
Finance marketing requires recognizing these tendencies, especially for international corporations with U.S. interests. In his second term, Trump may continue protectionist policies, leading investors to diversify into other countries, particularly emerging markets unaffected by U.S. policy. This may present new prospects for adaptable enterprises that monitor U.S. markets for opportunities.
A second Trump term is multifaceted—depending on the administration’s focus on policies, it could either create new opportunities or negatively challenge global financial markets. For finance marketing professionals, adapting to these shifting market dynamics is important. Understanding how Trump’s policies play out globally can help investors stay ahead. As with any big political change, success will depend on balancing risk, staying informed, and adjusting strategies to navigate a global economy shaped by U.S. policies.
Key Takeaways
- A second Trump term could introduce both opportunities and challenges in finance marketing, as sectors like corporate businesses may benefit, while others might face hurdles due to trade tensions.
- Finance and marketing professionals must stay agile, adapting strategies to navigate potential stock market volatility, currency shifts, and industry-specific policy changes.
- Understanding Trump’s policies and their global impact is essential for finance and marketing experts aiming to leverage new market dynamics while managing risks in an evolving economy.
Fischer, H. (2024, November 6). With Trump returning to the presidency, everything from abortion to immigration is under threat. The Guardian. https://www.theguardian.com/us-news/ng-interactive/2024/nov/06/donald-trump-wins-election-11-issues-threat
How presidential elections affect the stock market | U.S. Bank. (2021, January 13). https://www.usbank.com/investing/financial-perspectives/market-news/how-presidential-elections-affect-the-stock-market.html
Hulehan, K., (2024, October 23). A lower corporate tax rate can be part of broader tax reform. Tax Foundation. https://taxfoundation.org/blog/trump-corporate-tax-cut/
IMF predicts global economic growth to slow amid trade tensions. (2019, January 21). PBS News. https://www.pbs.org/newshour/economy/imf-predicts-global-economic-growth-to-slow-amid-trade-tensions
Mullen, A., (2022, July 6). US-China trade war: timeline of key dates and events since July 2018. South China Morning Post. https://www.scmp.com/economy/global-economy/article/3177652/us-china-trade-war-timeline-key-dates-and-events-july-2018
NDTV News Desk. (2024, November 4). Explained: How US elections could affect global stock markets. www.ndtv.com. https://www.ndtv.com/world-news/here-s-how-us-elections-could-affect-global-stock-markets-6940589
Rushe, D. (2017, November 28). Dow Jones industrial average surpasses 20,000 to record high. The Guardian. https://www.theguardian.com/business/2017/jan/25/dow-jones-industrial-average-breaks-record-20000
U.S. energy facts – imports and exports – U.S. Energy Information Administration (EIA). (n.d.). https://www.eia.gov/energyexplained/us-energy-facts/imports-and-exports.php
Whitbread, S. (2024, November 6). Trump wins US election – but what will Trump 2.0 mean for the markets and the global economy? The industry. IFA Magazine. https://ifamagazine.com/trump-wins-us-election-but-what-will-it-mean-for-the-markets-and-the-global-economy-the-industry-reacts/
Share this content :
