In 2016, Trump won the electoral college but lost the popular vote. In 2020, Trump lost both, but now, with a very strong mandate, he triumphantly won both the Electoral College and the popular vote, giving Republicans control of the Senate and House of Representatives. The councilors were elected in the same manner, resulting in a complete victory.
Mr. Trump ran a strong and well-executed campaign across seven key battleground states based on the mantra of “Make America Great Again,” focusing on the core issues of immigration, inflation, the economy, and bringing back American jobs.
immigration
Immigration was a cornerstone of President Trump’s first term, and there is no doubt that it will remain central to his return to the Oval Office. During his first term, which ran from 2017 to 2021, Donald Trump made “building a wall” a centerpiece of his campaign, but this time he has made reference to the nation’s 16 million illegal immigrants, accusing him of failing to ensure their safety. criticized the Biden-Harris campaign. southern border.
For President Trump, managing immigration, both legal and illegal, will be a complex, expensive and politically charged challenge. The Trump administration is likely to continue policies aimed at curbing illegal immigration, but the issue is intertwined with concerns about legal immigration.
The H-1B visa has become central to Indian engineers and white-collar workers in the United States, especially those in STEM fields. STEM graduates are critical to U.S. industry, especially as a skilled workforce is needed to meet the demand for technology and innovation, high-end manufacturing, and especially chip design. Approximately 70% of H-1Bs are granted to Indian nationals.
For decades, the technology industry has provided the United States with a global competitive edge, and Silicon Valley continues to epitomize its center of innovation. India’s high-tech workforce plays a critical role in the U.S. high-tech economy, with the brightest talent seeking America’s cutting-edge STEM institutions and then Silicon Valley to found solid tech startups. This is a true economic and innovative strength. It is tied to India’s technical workforce.
But President Trump’s positions on immigration restrictions mean there could be difficulties for H-1B workers. Without effectively addressing illegal immigration, the Trump administration may find it difficult to balance public sentiment with the economic need for a skilled workforce. The administration will have to strike a delicate balance between strengthening borders and ensuring the global competitiveness of the U.S. workforce, especially as China seeks to reduce economic disparity.
employment, economy, inflation
President Trump’s main message to his supporters during the campaign was that the economy would continue to face significant headwinds and that inflation would continue to weigh on American household budgets. Inflation is a top issue for some voters, especially blue-collar voters, who were a significant part of President Trump’s support base in 2016, 2020, and 2024. Job creation will be important, especially for manufacturing and skilled workers. But rising inflation and the lingering effects of the coronavirus pandemic mean blue-collar Americans are looking to Trump to deliver on his promises to stimulate jobs and lower the cost of living. I am doing it.
President Trump’s economic strategy could include continuing tariffs and pushing manufacturing jobs back. The goal is to stimulate the economy, but tariffs, especially the proposed 20% on imports from most countries, are a major concern for trade relations, especially with China, where President Trump has proposed tariffs as high as 60%. It may lead to deterioration. U.S. companies are likely to adopt a “China plus one” strategy, which maintains access to the Chinese market while diversifying into other countries such as India.
This strategy is in line with the example set by Apple, where multiple vendors are investing nearly $5 billion in manufacturing in Tamil Nadu and Karnataka. As a result, the tech giant will reportedly assemble $14 billion worth of iPhones in India in 2024, double its production from the previous year.
President Trump must address both workforce training and immigration policy to ensure the U.S. economy continues to attract the highly skilled manufacturing talent that will support these changes.
geopolitical tensions
The world situation has become more unstable since President Trump left office, with the Ukraine war approaching its third year in his second term, rising tensions in Eastern Europe, and full-scale conflicts in the Middle East spreading across the globe. It is highly likely that you will be working on it. The border between Israel and Lebanon, direct conflict with Iran, and the Indo-Pacific theater where China flexes its maritime power.
Relations with the Chinese government remain extremely difficult. During President Trump’s first term, he promised to buy $200 billion of American goods from China, a promise he never fulfilled. Under Trump 2.0, the new focus is expected to be on pressuring China to keep its promises or impose tariffs as high as 60%. Such measures could further stress already strained U.S.-China relations.
China’s ambitions in the Asia-Pacific and goal of becoming the world’s dominant power will only strengthen these stress points. This underscores the Quad’s role in the Indo-Pacific, as President Trump is likely to build on the progress made by the Quad under President Biden.
The Quad is a formidable nearly $35 trillion coalition of four democracies: the United States, India, Japan, and Australia that is reshaping the region’s economic landscape. The Quad’s economic vision serves as a beacon of stability, prosperity, and innovation. Along with Australia and Japan, the United States and India share the vision of a free and open Indo-Pacific.
The US has agreements and trade agreements with Japan and Australia, while India has a strong trade agreement with Japan and a framework in place with Australia. Through the Trade Policy Forum (TPF), both Washington and New Delhi have made progress on unresolved trade issues. The Quad could serve as an important alternative framework to bilateral trade agreements to strengthen economic engagement between the four democracies.
geoeconomic factors
India’s growing industrial capacity could serve as an alternative supply chain hub for U.S. companies, reducing their dependence on China. This change in policy is also consistent with India’s interest in establishing itself as a manufacturing hub and building a resilient supply chain.
Elon Musk played a key role in Trump’s return to the White House, publicly supporting Trump and contributing significantly to his campaign. Musk is expected to be a prominent voice in the business world and is expected to have great influence on the new Trump administration. Mr. Musk has expressed his desire to introduce Starlink Tesla domestically.
Tesla in India will not only advance e-mobility and contribute to India’s climate goals, but will also be a key component of India’s chip manufacturing capacity, on which self-driving cars depend.
India has more than 1,700 global capability centers supporting American companies and 50% of Qualcomm’s intellectual property is generated there, making India a valuable partner in research and development. . Major defense companies such as Boeing, Lockheed, and RTX are also expanding their manufacturing footprint in India, strengthening U.S.-India defense cooperation and strengthening India’s indigenous defense manufacturing capabilities.
Russian factor
As U.S.-India defense cooperation grows in areas where they collaborate at critical technology and defense intersections, India’s defense dependence on Russia has gradually declined. With trade volume between the two countries reaching $200 billion, the economic ties between India and Russia seem small.
However, India’s continued import of oil from Russia remains a pain for the United States. But Washington understands that India is a net importer of energy and is now the world’s most populous country, meeting the needs of its 1.4 billion people. The incoming Trump administration is likely to support policies that strengthen India’s energy independence and align the two countries on common security interests, but President Trump’s withdrawal from the Paris Agreement clearly indicates less support for clean energy. It became.
As tensions with Beijing escalate, the U.S.-India relationship will continue to play an important role in regional stability. From security to technology, economic ties and people-to-people ties, the strategic partnership between Washington and New Delhi remains apolitical and strong.
The United States and India are increasingly aligned geopolitically, with Prime Minister Modi sharing a cordial relationship with President Trump, and they are likely to pick up where they left off in 2021. President Trump also calls Prime Minister Modi a “friend,” and Prime Minister Modi also calls him a “friend.” This was one of the first three calls the president-elect made to world leaders.
When President Trump returns to office, his vision will be to build on the progress made in his previous term and under the Biden administration, solidifying India as a cornerstone of the US Indo-Pacific strategy. President Trump’s 100-day agenda includes tackling inflation and manufacturing demand, which will require balancing tariffs, job creation, immigration reform and border issues.
On the world stage, the twin conflicts in Ukraine and the Middle East will continue to deplete resources, but President Trump has not hesitated to reduce financial support and prioritize investment domestically.
President Trump will also need to deal with an increasingly assertive China, support partners like India, and manage trade tensions with pragmatism. A U.S.-India relationship poised for growth is essential if both countries are to achieve their strategic goals in an uncertain world.
Trump has taken an aggressive approach in the past, but Trump 2.0 will require tempering that aggressive approach with the subtle complexities of pragmatic fiscal policy and prudent foreign policy.
Mukesh Agi is the President and CEO of the US-India Strategic Partnership Forum (USISPF).
