Even before taking office, the so-called leader of the free world has already floated the idea of buying Greenland, reclaiming control of the Panama Canal, and has referred to Canada as America’s “51st state” – all while refusing to rule out the use of military force to achieve his goals.
Trump’s rhetoric signals a more radical variant of his “America First” ideology —one that rejects international norms, globalisation and free trade in favour of economic nationalism and territorial gain.
While experts say this leaves world leaders scrambling to second-guess Trump’s next move, his belligerent style of diplomacy could rupture America’s long-standing global alliances with its closest partners.
At the heart of Trump’s economic agenda lies a renewed assault on global trade.
Even America’s closest allies are not exempt, with threats of 10-20 per cent on imports from all countries including the UK, while Canada and Mexico could face 25 per cent tariffs. Trump has even warned the EU to increase purchases of American oil and gas. “Otherwise it is TARIFFS all the way!!!” he posted on his social media site Truth Social.
Beijing has since responded with countermeasures, extending tariffs on US imports and sanctioning American firms.
“The economic impact of the trade war is subject to considerable research and from a purely economic standpoint are largely negative both for the US citizens and for the Chinese economy,” says Robert Elliott, a professor of economics at the University of Birmingham.
Threats to America’s closest allies
Trump’s proposed tariffs will come at a fraught moment for the EU. With growth stagnating across the G7 and inflation still biting, a tariff war with Washington would be a serious blow to Europe.
Stephen Miran, Trump’s incoming chair of the Council of Economic Advisers, has advocated for an aggressive response, suggesting the US could threaten to withdraw defence and security assistance if allies dare to retaliate.
“A tough dealmaker never starts where they want the deal to wind up. Trump’s intention is to signal toughness to bring the world in line,” says Christopher Phelps, from the University of Nottingham’s Department of American Studies.
Although Britain has not been directly threatened, Politico reported that Sir Keir Starmer’s government was prepared to retaliate if Trump imposes universal tariffs. If the UK is targeted, Downing Street may be forced into tough negotiations on deregulated US products being sold to the UK.
Justin Trudeau may be one of the first world leaders to have fallen victim to the whims of Trump.
Meanwhile, Greenland and Denmark, which rules the self-governing territory, have said the island is not for sale after Trump declared that the US needed to control it “for national security purposes”.
Panama and Mexico have also been drawn into Trump’s territorial ambitions. Panama’s foreign minister, Javier Martínez-Acha, said that its sovereignty over the Panama Canal was “non-negotiable” after the US President-elect refused to rule out military force to seize it.
Yet behind the scenes, her government has begun stepping up seizures of the opioid fentanyl — which Trump has complained about being transported over the US’s southern border.
An end to wars in Ukraine and Gaza?
His relationship with Russia also remains ambiguous: while he extended sanctions on Moscow during his first term, he also cultivated warm ties with the country’s President, Vladimir Putin, calling him “genius” and “savvy.”
“The US could offer Kyiv explicit security guarantees, although Nato membership remains a distant prospect,” she said.
Trump joined by family, Zuckerberg and Bezos at church ahead of inauguration
Read MoreThe surprise appointment of property mogul Steven Witkoff as Trump’s Middle East envoy raised eyebrows in November. But just weeks later, Witkoff was dispatched to Qatar, and last week was thanked personally by the county’s Prime Minister as playing a vital role in efforts to secure the ceasefire.
However, there is still concern that the fragile ceasefire will break down, with Israel reiterating that it “retains the right to continue our war aims” in Gaza if Hamas breaks its terms.
But for Trump’s allies and adversaries, the challenge remains the same: How to navigate a new world order where the US no longer plays by the old rules.
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