What the Trump-Harris showdown means for international business

As the United States gears up for a pivotal election day, the showdown between Democratic candidate Kamala Harris and Republican candidate Donald Trump stands to reshape the global business landscape.

The contrasting visions of the candidates not only are poised to influence domestic policies, but also hold significant implications for international trade, foreign policy, and worldwide economic stability.

Current Vice President Kamala Harris has put forth a that prioritized climate change and multilateral cooperation. Harris has aimed to with international environmental , a shift that could significantly impact countries like China and those in the European Union.

Under the Biden-Harris administration, the U.S. in 2021, signaling a commitment to reducing carbon emissions and promoting sustainable practices. This approach appeals to , which has made substantial investments in renewable energy and electric vehicle production. The global shift towards sustainability under Harris could in green technologies and increase demand for sustainable products worldwide.

Former President Donald Trump has advocated for that domestic production and trade. His previous administration on goods from China, aiming to reduce the trade deficit and encourage American manufacturing. Companies such as Boeing and General Motors could be , particularly if trade tensions with China escalate again. Trump’s approach could U.S. relationships with allies in Europe, who favor collaborative solutions to global issues. From a domestic perspective, Trump’s — particularly in energy and finance— has allowed many businesses to innovate and expand. The oil and gas industry, for instance, .

The implications of these policies extend beyond environmental initiatives and trade, however. For instance, Harris’s focus on diplomacy could , fostering partnerships that facilitate economic cooperation. On the other hand, Trump’s vow to on imports from all nations and 60% duties on imports from China may lead to uncertainty; the International Monetary Fund that global growth could slow down if protectionist policies take root. 

However, Trump’s focus on renegotiating trade deals has been across agricultural and manufacturing sectors. The (United States-Mexico-Canada Agreement), which replaced NAFTA, is touted as a for American farmers and manufacturers; proponents argue that the agreement offers better protections for American intellectual property and improves market access for U.S. dairy and agricultural products in Canada and Mexico, ultimately .

Mexico, a crucial trading partner under the USMCA, could also see depending on the election outcome. Harris’s administration will likely focus on through economic cooperation and immigration , which could enhance trade flows and workforce stability. In contrast, Trump’s , which often emphasized and stricter immigration , could potentially complicate labor markets and supply chains that rely on Mexican labor. Companies like Ford, which have substantial in Mexico, may face depending on the policies that emerge from the election.

Overall, the upcoming election represents a crossroads for U.S. foreign policy and its implications for international business. As businesses worldwide assess each administration’s strategies in light of these potential outcomes, the stakes are high for the rest of the world.