With President Donald Trump taking charge of the world’s largest economy, speculations are rife about the impending world’s recession that may hit soon each one of us.
Given that the US holds one-fourth of the world’s GDP, any changes effected on its economic front will have a cascading effect on the world’s economy, particularly those economies in the Middle East and South-East Asia that have trading relationships worth billions of dollars with the US. There is talk about Trump’s presidency initiating economic changes in order to correct the US’s long-standing trade deficit resulting from its increased dependency on imports from other countries and thereby jeopardizing its manufacturing sector.
Trump’s steps towards reduced American imports from countries like China, Japan, Saudi Arabia, and other countries would deal a heavy blow to them as their dollar reserves would shrink considerably, thereby crippling their trading relations with their neighbours and other countries to the core. This is clearly symptomatic of the impending global recession.
In just one week of his presidency, Trump has signed two crucial executive orders in order to put a check on Syrian refugees and immigration from seven Muslim majority countries as well as to amend the H1 B and L1 visa rules. Perhaps these are the first steps towards making America great again, however the worry is about American steps that can cause global recession again.