On 20 January 2025, Donald Trump was sworn in as the 47th President of the United States. In the days that followed, the members of the administration began to be known, which includes several business leaders who will take on significant roles in the formulation and execution of policies in the coming years, reflecting a government that prioritises business efficiency over conventional democratic processes.
Trump is a charismatic and polarising leader who promotes a disruptive, nationalist and conservative style of politics. His governance challenges traditional political conventions, opposing established institutions and consolidating a marked influence within the Republican Party, where his leadership has become a central element of the party’s identity. His motto ‘Make America Great Again’ reflects his vision of restoring the country’s supposedly glorious past by adopting economic nationalism, defending trade protectionism and prioritising national production.
In the first days of his administration, Trump implemented a set of political measures that reflect his priorities in this, his second term, in areas such as immigration, trade strategy and foreign policy. In the area of immigration, large-scale deportations began, mainly of Latin American immigrants, thus fulfilling one of his election promises to expel millions of immigrants who were in an irregular situation.
On the trade and economic front, the US announced tariffs of 25 per cent on imports from Canada and Mexico and 10 per cent on imports from China. According to the US administration, the new tariff measures are aimed at reindustrialising the country’s economy and reducing trade imbalances, although they have generated commercial and geopolitical tensions, affecting global supply chains.
This new US policy could mark the end of an era of free trade, introducing uncertainties that affect global economic growth. According to some analysts, there are concerns that an escalation in trade tensions could lead to an economic slowdown, with negative impacts for various countries and economic sectors.
The new US policy could mark the end of an era of free trade, introducing uncertainties that affect global economic growth
Although Trump’s tariffs aim to protect specific industries in the United States, they translate into higher costs for companies and, ultimately, higher prices for imported goods. If the countries affected begin a policy of retaliation by also imposing tariffs on products imported from the US, this will also affect US companies, with an impact on economic growth and employment. In addition, countries like China may decide to deliberately devalue their currency, making their products cheaper on the global market and cancelling out part of the effect of the US tariffs.
Domestically, Trump signed a record number of executive orders in the first days of his second term. He withdrew the country from the World Health Organisation (WHO) and the Paris Agreement. He reversed policies related to gender rights and diversity. In one of his most controversial measures, he established the Department of Government Efficiency (DOGE), headed by Elon Musk, the South African billionaire who leads and owns companies such as Tesla, SpaceX and X, with the aim of increasing state efficiency and reducing costs.
On the foreign front, he has put forward the idea of acquiring Greenland, an autonomous territory of Denmark, as well as taking control of the Panama Canal. With regard to the plan for resolving the conflict in the Middle East, he suggested acquiring and rebuilding the Gaza Strip, with the intention of turning this territory into a ‘Middle Eastern Riviera’, saying that it was up to the Arab states to take in Palestinian refugees.
Trump’s decision to reduce support for Africa raises uncertainties about crucial projects
He also renamed the ‘Gulf of Mexico’ the ‘Gulf of America’ and suggested a potential annexation of Canada, saying that Canada could benefit if it became the 51st state of the USA. Most of these ideas have been received with great perplexity in the international community, which has sought to avoid confrontation with the US while strategies are being defined to deal with the new Trump administration. Still on the external front, the foreign aid agency USAID began to be dismantled, along with the interruption of all international support, with Trump’s team claiming that it was a corrupt institution and that there was a need to realign international assistance. This decision has caused alarm among the main countries receiving US support, but also among Republicans and Democrats, who fear the consequences of eliminating programmes considered critical for national security and to counterbalance the influence of countries like China. Some members of the Republican party have come out publicly to defend USAID’s programmes, given their importance in the geopolitical competition, and suggest that instead of a complete closure, the agency could be reformed to improve its efficiency and alignment with national interests.
Mozambique has been a beneficiary of USAID programmes, with an estimated USD 570 million in support by 2024. The agency has focussed its assistance on health, food security, agriculture, disaster response and humanitarian aid, education, among others. With the possibility of this support being withdrawn, even in part, the Mozambican government now faces a significant challenge at a critical time when it is trying to regain the confidence of the population, and the internal financial capacity to implement these programmes is reduced.
