New Delhi [India], January 21 : The cabinet members of the Trump 2.0 administration are expected to take a hawkish approach on various fronts, says a report by Union Bank of India.
The cabinet members are poised to implement significant changes in areas like fiscal policy, foreign relations, and national security.
It said "Trumps' cabinet likely to be hawkish; all eyes on their action next week"
The report highlighted that Scott Bessent, the new US Treasury Secretary, aims to maintain the dollar's dominance as the world's reserve currency.
He is advocating for a permanent tax cut to avoid a USD 4 trillion increase, positioning this as a key step toward sustaining economic growth. Bessent also sees tariffs as a valuable tool in trade negotiations, suggesting their potential use in upcoming deals.
His fiscal agenda includes reducing the US budget deficit to 3% of GDP by 2028, signaling a commitment to long-term economic stability.
In fact during his inauguration US President Donald Trump reiterated his threat towards the BRICS nations, which includes India, stating that countries that are part of this organisation would face 100 per cent tariffs on trade with the US if they continue their de-dollarization efforts.
"If the BRICS nations want to do that, that's OK, but we're going to put at least a 100 per cent tariff on the business they do with the United States... It's not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, No, we have them over a barrel. And there's no way they're going to be able to do that," Trump added.
Trump, earlier before being sworn as the 47th President of the US, had threatened BRICS countries over the imposition of 100 per cent tariffs on all imports from those countries, should they dare to launch their currency.
Secretary of State Marco Rubio is expected to take a hardline stance on China. Known for his criticism of Beijing, Rubio has championed legislation banning Chinese telecom equipment in the US and has pushed for stronger support for Taiwan.
His focus on China suggests a more assertive approach to US-China relations, which could lead to heightened tensions but also stronger alliances in the Indo-Pacific region.
Elon Musk, heading the newly formed Department of Government Efficiency (DOGE), has pledged significant budget cuts. They aim to reduce federal spending by USD 2 trillion, with an initial target of slashing over USD 500 billion annually. Their focus on fiscal restraint could lead to major changes in federal programs and expenditures.
Mike Waltz, the new National Security Advisor, emphasizes shifting focus to address threats from China. He has stressed the importance of resolving conflicts in Ukraine and the Middle East to prioritize confronting the Chinese Communist Party. Waltz's approach suggests a strategic pivot in US foreign policy, concentrating resources on countering China's growing influence.
The report indicated that the Trump administration's policies could bring substantial changes to global trade, diplomacy, and economic dynamics. All eyes are now on the cabinet's actions expected next week.
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