As Donald Trump assumed the presidency in 2017, his unpredictable leadership style sparked global uncertainty. Kevin Lings, speaking to Bronwyn Nielsen, analysed the potential impacts of Trump’s policies. With a focus on deregulation and “America First,” Trump aimed to swiftly transform the U.S. economy. However, his approach posed both opportunities and risks, particularly for South Africa amidst potential global trade tensions.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
The seventh BizNews Conference, BNC#7, is to be held in Hermanus from March 11 to 13, 2025. The 2025 BizNews Conference is designed to provide an excellent opportunity for members of the BizNews community to interact directly with the keynote speakers, old (and new) friends from previous BNC events – and to interact with members of the BizNews team. Register for BNC#7 here.
If you prefer WhatsApp for updates, sign up to the BizNews channel here.
Listen here
Summary of the interview ___STEADY_PAYWALL___
As Donald Trump took office in January 2017, uncertainty rippled across global markets and political landscapes. His reputation for unpredictability and swift action painted a future that could disrupt the global order. Kevin Lings, chief economist at Stanlib, dissected this new era in a discussion with Bronwyn Nielsen, focusing on what Trump’s policies might mean for South Africa and the world.
Trump’s strategy was clear: a flurry of executive orders to transform the U.S. economy. Lings pointed out Trump’s urgency—working under the constraints of a one-term presidency and looming midterm elections. “He doesn’t want to hang around,” said Lings, explaining Trump’s intent to bypass lengthy congressional debates and immediately implement his agenda. His policies prioritized deregulation, boosting U.S. business competitiveness, and fostering growth in sectors like oil and small businesses.
The economist anticipated both opportunities and challenges. For the U.S., the approach was “net positive,” stimulating growth and reducing barriers for business expansion. However, for emerging economies like South Africa, the ripple effects could be troubling. Trump’s aggressive trade policies, including potential import tariffs and a focus on “America First,” threatened to ignite global trade tensions. Lings highlighted South Africa’s vulnerability as a small, open economy, warning that a trade war involving China, the U.S., or Europe could be particularly disruptive.
Read more: Neil de Beer lambasts “insulting & idiocratic” SA politicians…
Yet, he offered some hope, dismissing the likelihood of South Africa losing its preferential trade agreements with the U.S. Instead, he stressed the importance of political neutrality for South Africa, urging it to balance relations with global powers like China, Russia, and the West.
On the geopolitical front, Trump’s unpredictability was both his strength and a source of global unease. According to Lings, Trump’s willingness to act independently unsettled traditional diplomacy, leaving nations unsure of his next move. While this could strain U.S.-China relations, Lings envisioned a pragmatic outcome, with strong rhetoric followed by negotiation and compromise.
For South Africa, the lesson was clear: Trump’s success underscored the value of deregulation to spur economic growth. “I hope South Africa listens to that message,” Lings concluded, suggesting a path of reform amid global uncertainty.
As Trump’s presidency began, his bold moves set the stage for a redefined global order, leaving nations like South Africa to navigate the uncertain waters of his administration.
Read also:
