Trump's Bold Moves: Economic Sanctions, Immigration Issues, and Their Global Impact on India

Since Donald Trump took office, his decisions have been making waves worldwide. He is known for his assertive and unconventional leadership style, which promises significant changes in the global landscape, especially in the economic, defense, and diplomatic spheres. The impact of these changes will undoubtedly be felt by India, a key global player and a strategic partner of the US.
Economic Sanctions: a Strong Ally
Economic sanctions are probably the most potent tool in the arsenal of Trump. The United States has for long used sanctions as a weapon to chasten countries and gain an upper hand in global power play. Trump's administration is not an exception in this regard. Although many countries can impose sanctions, the US sanctions carry much weight because the US dollar remains the global giant in international trade. The US has a significant influence on global markets, and its sanctions can have a far-reaching impact, especially when the US targets a country's ability to transact in dollars.
The Strength of the Dollar
Around 40% of global debt is denominated in US dollars, and 59% of foreign exchange reserves in global central banks are held in dollars. Moreover, 90% of global trade transactions take place in dollars. This makes the US' financial decisions and sanctions impactful across the world. The US can restrict countries from using the dollar in international transactions, which can severely disrupt their economies and trade relationships.
SWIFT Restrictions: A Major Financial Arm
A kind of financial constraint a country can observe from the United States is SWIFT restriction, which is one of the stringent financial sanctions the US can impose on a country. This messaging network allows one to make secure international transactions, and 11,000 institutions in over 200 countries depend on it. To participate in the global economy will be a far-fetched dream if a country's access to SWIFT is restricted.
Immigration and Deportation: India Case Study
One major challenge during Trump's rule is the issue of immigration. The United States has accelerated its process to deport illegal immigrants, and the list includes most Indians. Indian authorities have even indicated their interest in collaborating with the US government to facilitate the deportation of undocumentated Indians. External Affairs Minister S. Jaishankar clarified the country's position, indicating that India will collaborate with the US for the "lawful return" of Indians who are abroad illegally.
What Does This Mean for India?
The economic sanctions and immigration policies of Trump will have a direct impact on the relationship between India and the US. Whether it is the trade restrictions or deportation of illegal Indian immigrants, India needs to be cautious of all these developments. The new policies of Trump and his vision of a "great America" will challenge India's strategic role as a partner.