FOREX
As Trump makes historic return, world braces for new era
Donald Trump was elected 47th President of the US, capping a remarkable comeback four years after he was voted out of the White House, and ushering in a new American leadership likely to test democratic institutions at home and relations abroad.
Trump, 78, recaptured the White House on Wednesday after a campaign marked by dark rhetoric that deepened the polarisation in the country, prevailing after two attempts on his life and a late decision by Democrats to run Kamala Harris when President Joe Biden withdrew from the race in July.
Trump’s victory in the swing state of Wisconsin pushed him over the 270 Electoral College votes needed to win the presidency. As of 8 a.m. ET (1300 GMT) Trump had won 279 electoral votes to Harris’ 223 with several states yet to be counted, Edison Research posted. He also led Harris by more than 5 million votes in the popular count.
“America has given us an unprecedented and powerful mandate,” Trump said early on Wednesday to a roaring crowd of supporters at the Palm Beach County Convention Centre in Florida.
Impeached twice
Trump prevailed despite persistently low approval ratings. Impeached twice, he has been criminally indicted four times and found civilly liable for sexual abuse and defamation. In May, Trump was convicted by a New York jury of falsifying business records to cover up hush money payments to a porn star.
Despite legal woes and controversies, Trump is only the second former president to win a second term after leaving the White House. The first was Grover Cleveland, who served two four-year terms in the late 1800s.
Republicans won a US Senate majority, but neither party appeared to have an edge in the fight for control of the House of Representatives where Republicans currently hold a narrow majority.
Major stock markets around the world rallied following Trump’s victory, and the dollar was set for its biggest one-day jump since 2020.
Jobs and Economy
Voters identified jobs and the economy as the country’s most pressing problem, according to Reuters/Ipsos opinion polls. Many Americans remained frustrated by higher prices even amid record-high stock markets, fast-growing wages and low unemployment.
With the Biden administration taking much of the blame, a majority of voters said they trusted Trump more than Harris to address the issue.
Hispanics, traditionally Democratic voters, and lower-income households hit hardest by inflation helped fuel Trump’s election victory. His loyal base of rural, white and non-college educated voters again showed up in force.
World leaders from Europe to Asia congratulated Trump, whose victory will have major implications for US trade and climate change policies, the war in Ukraine, Americans’ taxes and immigration.
Trump’s tariff proposals could spark a fiercer trade war with China and US allies, while his pledges to reduce corporate taxes and implement a spate of new cuts could balloon US debt, economists say.
Trump has promised to launch a mass deportation campaign targeting immigrants in the country illegally.
He has said he wants the authority to fire civil servants he views as disloyal. His opponents fear he will turn the Justice Department and other federal law enforcement agencies into political weapons to investigate perceived enemies.
A second Trump presidency could drive a bigger wedge between Democrats and Republicans on issues such as race, gender, what and how children are taught, and reproductive rights.
Harris Falls Short
Harris fell short in her 15-week sprint as a candidate, failing to galvanise enough support to defeat Trump, who occupied the White House from 2017-21, or to allay voters’ concerns about the economy and immigration.
Harris had warned that Trump wanted unchecked presidential power and posed a danger to democracy.
The Second Term
Trump and his Vice-President Senator JD Vance are due to take office on January 20. Trump has signalled he will prioritise personal fealty in staffing his administration. He promised roles in his administration to Elon Musk and former presidential candidate Robert F. Kennedy Jr
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