Topic > President Donald Trump's policies and their effect on mergers

The global economy has undergone enormous changes since 2016. Driven by Brexit, the rise of populism on the European continent and Trump's presidential victory, the Globalization has been shaken to its core and has been plagued by uncertainty, both politically and economically. Political uncertainty, for the sake of our arguments, is exemplified by the election of Donald Trump. By adjusting our studies to the effects of election results and noting their dramatic effect, we should be able to make a link between such results and cross-border M&A activity. Our essay will attempt to examine how his policies on factors such as taxation, trade, politics and international relations interacted to influence merger activity, both on a local and global scale. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay President Donald Trump has made several bold promises on his path to the presidency, particularly regarding tariffs, taxation, and repatriation. Starting with tariffs, Trump promised to rebalance the trade deficit with China. To do so, it has imposed several rounds of tariffs on Chinese goods, the latest of which, in early September 2019, imposed 15% tariffs on $110 billion in Chinese imports. In May he also proposed tariffs on $300 billion worth of Chinese goods, a further escalation of simmering tensions between the world's two largest economies. This is on top of the 10% tariff applied in 2018 on $200 billion in Chinese imports. Regarding taxation, during his campaign speech, the president promised a major overhaul of tax legislation in the United States, with promises of greater tax cuts, reducing corporate tax rates by up to 15%. The president was true to his word with the introduction of the Tax Cuts and Jobs Act in 2017, which reduced corporate taxes from 35 to 21 percent. It also encouraged repatriation by easing taxation on profits made abroad. All these factors have had their impact on corporate investment decisions on a global scale. The trade war has taken a toll on its two main counterparts: America and China. For America, due to the President's efforts to target China and its products in the face of punitive tariffs and executive orders, many companies will begin to consider relocating business operations to other countries to avoid the costs of continued repercussions between the two largest economies in the world. These actions would cause a decrease in presence in foreign markets and an increase in the costs of foreign products brought into the United States. As for China, losing access to American technology, a major weapon in the president's arsenal, would cause an economic slowdown for China, particularly as it continues its journey to becoming a global power. Another factor causing headaches for China is that America, through CIFIUS, continues its intense scrutiny of incoming foreign investment in the name of national security, particularly from China, in areas such as technology, is blocking several deals that involve the acquisition of low-cost tech startups in the name of national security. Several Chinese sectors, such as technology and construction, will be the ones that will be most affected by the fallout of this trade war. America, too, despite what the President likes to say, has a lot to lose from the fallout of the trade war with.