Even Before Taking Office, Trump Stirs Global Political Turmoil

With one month left until Donald Trump begins his second term as U.S. president, his influence is already sending shockwaves worldwide.

His threats to impose tariffs have played a role in Canada’s cabinet crisis, leaving Prime Minister Justin Trudeau in a precarious position. In Europe, the fear of tariffs has further destabilized already fragile governments. Allied leaders are scrambling to maintain support for Ukraine, while Trump pushes for a swift deal to end Russia’s invasion.

This prospect has led both sides to intensify battlefield efforts, with Moscow deploying its most advanced missiles and Kyiv carrying out bold strikes, including the assassination of a Russian general in the capital.

Outside of NATO

In the Middle East, Trump-aligned leaders in Israel and Turkey are maneuvering for strategic advantages, while Iran—frequently targeted by the president-elect—faces setbacks.

Its allies Hezbollah and Hamas are faltering, and the sudden fall of its supported dictator in Syria adds to its troubles.

China, largely spared from Trump’s post-election spotlight on social media, is fortifying its trade defenses in anticipation of aggressive policies from the incoming U.S. administration.

Domestic Front

Domestically, Trump has taken charge of negotiations on a spending bill to avert a government shutdown. Federal Reserve Chair Jerome Powell stated that monetary authorities are beginning to factor in potential measures like tariffs from the president-elect.

Since the election, the U.S. stock market and Bitcoin have surged, gains Trump has proudly claimed credit for. Meanwhile, current U.S. President Joe Biden has all but disappeared from the public stage.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.