What does a new American president mean for the world?

By Staff Reporter - 14 Dec '20 14:51PM
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  • What does a new American president mean for the world?
  • (Photo : Getty Images)

After months of fraught campaigns and then a tense wait for mail-in votes to be counted, Joe Biden has been declared the new president of America. 

It was news to savour for Donald Trump's opposers both domestically and internationally. So with Biden having stated his intentions to put an end to many of Trump's tactics and policies, what can the rest of the world expect over the next four years?    

Many politicians, businesses and investors will have been watching the election intently. Combined with the recent hope of an effective COVID-19 vaccine, the FTSE 100 jumped some 4.4% in the immediate aftermath. The positive impact was seen across other markets too, including forex and many of the leading commodities

Looking beyond these initial impacts, below is a summary of some of the significant changes on the horizon.  

International relations

From Europe to the Middle East and Asia, Biden is expected to try to restore many of the international alliances Trump has damaged or cast aside.

Owed in part to his proud Irish heritage, the new president is a supporter of the EU and the Nato military alliance. His opposition to Brexit - especially a no-deal Brexit - could make the US-UK 'special relationship' more difficult, however. Relations with Russia and Putin in particular are also likely to worsen. 

Looking to the Middle East, Biden has promised to rejoin the Iran nuclear deal if Tehran halts its missile programme. It's also thought that Biden will try to press the reset button on relations with Saudi Arabia.  

The future of US relations with China remain uncertain. The antagonistic public rhetoric pushed by Trump is likely to be a thing of the past, but privately, caution is expected to remain.    

Chinese technology and investment will continue to be watched closely - something Biden may aim to co-ordinate with allies in Europe. He could look to improve links with nearby nations such as South Korea, however. 

Global trade

America's impact on global trade remains significant, and various trade wars are expected to continue to some degree. 

There are elements of Trump's protective approach that look set to continue, with Biden proposing that federal agencies use only US goods. He's also considering taxing US companies for relocating their operations abroad. 

Biden has suggested US trade policy will remain tough on China even if Trump's tariff regime is lowered or removed altogether. Tensions with Europe remain over aircraft subsidies and tech company taxation, meanwhile. European leaders also hope to ease or lift US tariffs on European goods and materials. 

A new trade deal with the UK will also need to be agreed after its exit from the EU single market. 

Climate change 

Trump's actions on climate change were among his most controversial, but Biden looks set to restore America's green ambitions. He's promised to rejoin the Paris Agreement on Climate Change while also integrating new domestic and international targets. 

One such goal is to hit net-zero emissions for the US by 2050. Biden also wants to join other nations in pressuring high carbon-emitting countries - such as China - to raise their own domestic ambitions. 

America still has the potential to have enormous influence on the international climate change effort despite Trump's policies, and EU countries need its support. Both China and Japan have recently set ambitious targets, however.

Whatever happens, life under Biden looks certain to be different to what's gone before. 

Copyright © 2017 News Everyday
* This is a contributed article and this content does not necessarily represent the views of newseveryday.com

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