American Renewal

THE RE-ELECTION OF Donald Trump may have surprised some, but the period since his inauguration on January 20 has not. The Trump administration has been unapologetically resolute in pushing Senate confirmations for his appointees and in delivering on his campaign promises regarding immigration, tariffs, energy policy, and other key issues aimed at reshaping America’s power and influence. Trump has signed nearly 50 Executive Orders (EOs), both to enforce Republican-led legislative priorities and to reverse many Biden-era policies. The overarching theme of the second Trump administration centres on national renewal—a three-pronged agenda designed to tackle illegal immigration, address the rising cost of living, and restore the country’s position as a global power.

Within hours of taking office Trump invoked several EOs, among which was one declaring a national emergency on America’s southern border to tackle illegal immigration. The order suspends the entry of individuals whom Trump describes as part of an “invasion” across the border, citing national security interests. It prohibits these individuals from accessing immigration provisions that might otherwise allow them to remain in the US.

Trump’s restoring America’s greatness pitch has worked very effectively as a double-edged sword, proving an effective campaign strategy to slay the Biden administration and now a way to invoke policies which are aligned with the political beliefs of the new Republican Party. Renaming places of national importance and reviewing key board memberships is part of Trump’s strategy to induce a national reimagination. An EO signed by Trump seeks to review the appointments to the US Board on Geographic Names and undid Obama’s order to rename North America’s tallest peak—‘Mount McKinley’ in honour of late President William McKinley. Furthermore, the EO intends renaming the Gulf of Mexico as the ‘Gulf of America’.

One of key Trump sells to the American public which ensured his victory has been the fact that the Biden administration practised an ‘open border’ policy, resulting in unwanted ‘aliens’ in the US who have made America unsafe. Through an EO, Trump has enforced the process of designating and rounding up members of international cartels and organisations as Foreign Terrorist Organisations (FTOs) or Specially Designated Global Terrorists (SDGTs).

Dismantling the diversity, equity, and inclusion (DEI) ‘agenda’ of the Biden administration has been at the forefront of Trump’s second term. The EO titled ‘Ending Radical And Wasteful Government DEI Programs And Preferencing’ aims to terminate all DEI initiatives and related positions, emphasising that hiring should focus solely on merit and individual performance.

On foreign policy, the second Trump administration has been dangling tariffs as a carrot-and-stick strategy. With most countries, Trump has touted the precondition of bringing investments to the US as the only way to evade American tariffs. With others, particularly US’ neighbours like Canada and Mexico, Trump has threatened tariffs and has not given them a way out. On the contrary, Trump has consistently used a pressure tactic on Canada to test the possibility of Canada’s merger with the US geographically. In principle, Canada’s merger with the US as the ‘51st state’ may be a far-fetched idea, but it projects a political unwillingness on the part of the Trump administration to engage with Canada and intensifies the possibility of tariff imposition on Ottawa. If the promised 25 per cent tariff does land on Canadian exports to the US, it could throw Canada into recession. Mexico, too, could face tensions with the US in the coming months, with an emergency on the northern border with the US, a high possibility of tariffs and a new trade deal on terms favourable to the US— all looming large.

The tenets of Trump’s foreign policy are deeply rooted in domestic imperatives. However, the size of the American economy and its global interconnectedness ensures that Trump’s decisions have far-reaching global consequences. One of the most significant ways countries are and will continue to be affected by Trump’s policies is through America’s approach to immigration. The impact is already being felt worldwide, with deportations and the rounding up of individuals within the US creating ripple effects. India has agreed to take back illegal immigrants to the US, complying with the law of the land in the US.

Trump’s policies on visa, and citizenship will remain critical to how people-to-people ties between Washington and other countries evolve in the coming years. That puts India at the helm of an anticipatory curve, where nations await how Trump’s policy may unravel on H1-B or skilled force visa and, more importantly, on the issue of birthright citizenship. Trump has revoked citizenship by birth in the US through an EO.

Given the number of Indian Americans in the US and their families back home in India, both the visa issue as well as the citizenship by birth issue could impact India like no other country, as, among other things, India is the largest recipient of H1-B visas. India could also come under Trump’s crosshairs on the issue of tariff as it enjoys a trade surplus with the US.

The Trump administration’s approach to foreign policy places significant emphasis on energy security. Trump plans to revamp American energy strategy by unleashing new sources of energy, both onshore and offshore. An EO has been invoked to tap into Alaska’s vast natural resources, reversing restrictive policies from the previous administration. Furthermore, the administration is expected to prioritise carbon-based energy sources over wind and solar.

Trump’s withdrawal from the Paris accord and WHO, stopping the foreign aid programme and reimposing selective bans on entry from certain countries and geographies are all indicative of policy reversals to assert America’s changing outward orientation, which is certain to intensify under the second Trump administration.

Through yet another executive order, Trump has empowered the secretary of state to place the ‘America First’ strategy at the core of every policy decision. While the full implications of this policy remain to be seen, its broad contours are becoming apparent. The administration’s domestic focus on compelling companies to invest in areas such as AI, semiconductors, and supply chain resilience may ultimately fall short of addressing certain externalities. For example, the recent market shock in the US, triggered by the launch of DeepSeek’s cost-effective AI assistant in China, underscores that if the US seeks to maintain hegemony, it cannot avoid the impact of external forces.

If Trump aims to extend the arc of America’s national power and influence, that arc inevitably ends with China, making technology a critical sector and the Indo-Pacific a key region for policy focus over the next four years.

Donald Trumpforeign policyH1-B visasimmigrationIndian Americanstrade tariffUS elections