How Trump’s economic policies will impact South Asia

January 9, 2025

DHAKA – As Donald Trump prepares to be inaugurated as the 47th president of the United States on January 20, marking the start of his second term, this occasion highlights essential democratic traditions and carries significant implications for his economic policies that will resonate globally. Joseph Liow Chin Yong, dean of the College of Humanities, Arts, and Social Sciences at Nanyang Technological University (NTU) in Singapore, told the Time magazine after the election that Trump would be “more prepared” in 2025. His anticipated economic policies, driven by an “America First” agenda, are set to transform not only the financial landscape in the US, but also that across South Asia, a region home to nearly two billion people and with vast opportunities and substantial challenges.

Trump, branding himself as a “tariff man,” centres his economic platform on trade levies. A Trump 2.0 administration would likely focus on economic nationalism, prioritising US interests with potential tax cuts for individuals and corporations to spur growth, possibly making parts of the Tax Cuts and Jobs Act of 2017 permanent. He intends to reduce regulations in energy, finance, and healthcare to lower compliance costs and boost economic activity. Maintaining a protectionist trade approach, he aims to renegotiate agreements, impose tariffs on imports—especially from China—and foster domestic manufacturing. In his 2024 campaign, he proposed at least 60 percent tariffs on Chinese imports and 10-20 percent on global imports. He has threatened tariffs on companies like John Deere for considering offshoring, and could levy 100 percent tariffs on the BRICS nations if they create a trade currency. Further tariff threats are expected as