Holmes said that Trump’s economic policies will help to strengthen the dollar and could prompt the US Federal Reserve to prevent cutting interest rates or at least halt its easing cycle.
“That’s going to hurt places where they’re especially concerned about their forex- Indonesia, for instance. ( In ) Japan, the yen has sold off amongst a strong dollar, ” he said.
In South Asia, places like Bangladesh, Pakistan, Sri Lanka and the Island may be affected, but India will likely be spared, he added.
“India seems to be somewhat isolated. It appears to have good relations with Trump, and its GDP ( gross domestic product ) is not significantly impacted by additional business. ”
RELATIONS WITH CHINA
As for US-China relations, Assoc Prof Chong said it depends on what Beijing meant when it called for a “peaceful co-existence ” following Trump’s victory.
They previously proposed that the US influence extends to Guam and other places in the Pacific, and that Beijing should have some sort of influence over everything two points west, ” he said.
It is up to Trump and the other players in the area to decide how they want to live together, deal with, or deal with a prospective situation in such a way. ”
Additionally, according to Assoc Prof. Chong, the world today is much more protectionist than in the beginning of Trump, with China being more concerned with preserving and growing its own business.
He added: “( In ) 2016, there was a lot more trust that China- and even Europe- would be more available to trade, to economic liberalisation. That has now established that it is not the situation.
Asia is today, in some ways, much less cozy than it was in 2016. ”