The US presidential election has been repeatedly described as fateful. European leaders were almost frozen in fear of what would happen next – especially if President Trump won.
The election itself, in which two candidates competed, is, however, a much less significant factor compared to how the contours of American politics and actions have already taken shape in the background of the election.
The role of the US in international politics and world order
In recent months, it has become quite clear that the United States will take an even more systematic and ruthless approach to any competitors that attempt to question or challenge its global leadership. This reason is a fundamental and absolute motivation for future action.
Warnings that the US leadership will not allow other countries to abandon the dollar have been heard, and they should be taken more than seriously. The dollar, along with American military might, is the foundation of US rule. Most recently, then-presidential candidate Donald Trump expressed his readiness to impose 100% tariffs on imports from countries that decide to abandon or avoid the dollar.
Security policy
NATO membership is vital for Latvia, and we expect the United States to continue to be a leading country in this alliance. Latvia, following President Trump’s request, has been rapidly increasing defense spending in recent years, making important purchases, including from U.S. manufacturers. U.S. support for Latvia’s security is long-standing, extensive, and systemic.
Already in his first presidency, D. Trump insisted that European countries would spend much more on their arms purchases. In this regard, he will now most likely be able to continue this consistent pressure on European countries.
It is unlikely that the United States will now completely abandon Europe and focus solely on the Far East to contain China’s development and expansion. Europe is very important to the Americans and will certainly remain firmly in the American orbit.
Any significant economic and political ties with Russia have not been permissible, this has been the clear policy of the West in recent years. Russia must be isolated. This model of Western European cooperation with Russia, which existed for years until the start of the Ukrainian war, threatens the leading role of the United States in Europe and has not been permissible, regardless of the surname of the American president. At present, it would not be clear why the elected president would change this maxim. Latvia plays an important and visible role in this field of play.
Trump’s ideas live and triumph.
It is more than logical that the United States also makes special efforts to support and develop those sectors in which American companies still have advantages. These are artificial intelligence, information technology, chip manufacturing, and other sectors. This primarily applies to the military application of these technologies, as well as to their application in civilian areas.
It is quite expected that now the new president will expand protectionist policies to help his country’s businesses. This position was initiated by D. Trump already in his first presidency and it is safe to say that Trump’s ideas live and win.
The Americans have successfully implemented a broad subsidy program that exempts various categories of companies from taxes. This encourages the outflow of capital from Europe, as well as the relocation of working European companies to the United States, which is fully consistent with D. Trump’s slogan of making America great again.
One could predict that the new administration will allow greater business opportunities for the fossil fuel industry and support the construction of nuclear power plants.
Latvian business will do the right thing if it invests in American companies in the aforementioned sectors. It is likely that we in Latvia can also expect American investments in the largest Latvian companies. Latvia is a pro-American country and will continue to be so in the future.