Political Shifts You Should Be Aware Of
As President Donald Trump started his second term, his administration declared a series of changes that could affect climate action, the global economy as well and international trade. Experts think Trump might help end some conflicts, but he could also struggle to combine tariffs with a domestic agenda that includes reducing the cost of living.
As the US President keeps on laying out his plans, it’s quite clear the world might look fairly different in a year, as experts think. Less than 24 hours after Donald Trump was sworn in as the 47th president of the United States, a panel of experts at the 2025 Annual Meeting in Davos, Switzerland, debated how the global reception to the new president runs the entire gamut from excitement to fear.
First thing, President Trump signed a raft of executive orders that seemingly aligned with his campaign promises right after taking office. His plans also cover topics that range from immigration to climate and diversity.
He now has to face a series of legal challenges against some of the most ambitious policy shifts, like ending birthright citizenship. This only shows the divisive nature of many of the new administration’s plans.
The Annual Meeting 2025 convenes all the global leaders to address impending global and regional challenges. They also include responding to geopolitical shocks, but also stimulating growth to improve living standards, and even stewarding an inclusive energy transition.
Changing China-US relations
With huge details about his promised program of tariffs yet to be declared, Trump’s economic policy is still in the “wait and see” stage. A trade war has long been looming between China and the United States, as Ian Bremmer, the President and founder of the Eurasia Group, warned.
He also said that US-China relations have somehow stabilized due to “enormous efforts” through a complex network of bilateral relationships. However, he also added that “getting to a deal with China might require a specific level of execution and implementation that’s way more complicated than it should be across the Trump administration, plus the GOP and Congress.”
Considering this, the upcoming months are expected to escalate the tensions between the US and China. “That’s one of the main issues on the foreign policy side that everyone needs to pay attention to,” Bremmer added. Even so, it seems that many people still disagree on the fact that the relationship between the two superpowers will improve or worsen in a year.
Even so, Allison declared that China could play an immense role in Trump’s plan to end the Russia-Ukraine war. The conflict could potentially be over in a minimum of six months, as he predicted, settled “at the current line of division.”
Trump wants to be seen as this dealmaker, but an international one who is also a peacemaker. Even if the deal might include sanctions on Russia, any agreement supported by Trump and Chinese President Xi Jinping is more than likely to attract cooperation from Putin, as specialists believe.
Domestic affairs
Trump also promised to deal with economic pressures at home, such as the promise to tackle inflation and cut the cost of living for US citizens. His extensive tariff plans might complicate the plan. Tariffs on goods from certain countries, such as Canada, Mexico, and China, would do nothing but increase the prices for consumers, at least at first.
The world could also potentially experience a new type of “equilibrium” when it comes to inflation, which could also come to rest at 2.5% or even 3%. This could potentially boost bond yields, which would also increase borrowing costs for governments such as the US.
On the other hand, Trump’s cabinet, consisting entirely of self-made billionaires, could be the answer to such a situation. Bremmer warned that the US is still politically polarized. He also said that Trump shouldn’t be treated like “any other president.”
“It’s quite unusual to have an individual who isn’t concerned or constrained by the rule of law. Many of us might find a way to get on with this, but this doesn’t make it normal.”
A new normal as far as politics go
On a very similar note, the panelist agreed that Trump’s flip-flop on banning social media platform TikTok, as well as his cryptocurrency launch, definitely doesn’t signal business as usual for US politics.
Such moves show Trump realises that technology is also the one that drives the change on a global level. It’s no longer correct to assume that “tomorrow could be like today” anymore. Before, change took place through incremental shifts, but the pace has sped up, not least due to the tech transformation affecting the global economy.
As Mead explained, “on a fundamental level, we see something as earth-shaking as the industrial revolution, but instead of being extended over many generations, it happens on a much more rapid time scale.
And even if the industrial revolution initiated in a few places at first, gradually spreading across the world, the information era still moved faster.” Nowadays, governments all over the world need to come to terms with a huge shift in public expectations around certain issues, such as the economy and social institutions.
Since the Trump administration keeps on unfolding its plans for the upcoming four years over the coming weeks, the implications for both the US and the rest of the world will become more apparent. For now, everyone seems to agree that Trump’s second term in office is a completely different political era for the entire world.
Global institutions and diplomatic balancing acts
As we witness Trump’s second term unfolding, questions arise over how global institutions, like the United Nations, NATO, and the World Trade Organization, could respond to his confrontational style and nationalistic agenda.
During his first term, Trump showed a specific hate for multilateralism, which would technically favor bilateral deals, and constantly criticized alliances that he argued placed undue burdens on America.
In his second term, this stance is also expected to get worse, since his administration seeks to redefine U.S. participation in long-standing diplomatic frameworks. This specific approach could potentially worsen relationships with old and established allies, since opening the door for other powers, like China and Russia, is a new move for us.
But Trump’s team showed some kind of willingness to renegotiate rather than instantly abandon some institutions. This could also lead to a fundamental reshaping of how international organizations work, with increasingly more emphasis on transactional relationships.
The American identity in transition
Besides geopolitics and economic policy, Trump’s second term seems to provoke a deeper cultural reckoning. There are, in fact, many Americans who question the identity and values that define the nation these days. Supporters of the president still argue that his policies are meant to restore sovereignty, order, and economic autonomy. Critics seem to counter that they exacerbate certain divisions, weakening democratic institutions, and undermining human rights.
All in all, one thing’s for sure: Trump’s presence in the White House for a second term is not just a political continuation, it’s more of a signal of a broader shift in national identity, one that can challenge assumptions about America’s role in the world.
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