DONALD TRUMP’S TRADE POLICY AND ITS REPERCUSSIONS ON DEVELOPING COUNTRIES: THE CASE OF ALGERIA
DONALD TRUMP’S TRADE POLICY AND ITS REPERCUSSIONS ON DEVELOPING COUNTRIES: THE CASE OF ALGERIA

Summary/Abstract: Donald Trump’s trade policy, rooted in the principle of “America First,” marked a significant break with established multilateral norms. Characterized by using said neo-protectionism, a preference for bilateral negotiations, and aggressive use of tariffs, this technique aimed to reduce exchange deficits and revitalize US manufacturing. These measures had significant repercussions on the worldwide economic system, particularly for developing nations. Increased policy uncertainty, slowing global demand, and the reorientation of world supply chains posed sizable challenges, even though a few countries mockingly benefited from a diversion of exchange flows. In the precise case of Algeria, the direct economic impact of Trump’s tariffs was perceived as minimal by the Algerian authorities. This assessment primarily stems from the minimal extent of bilateral change between the two nations, and, crucially, from the exemption of Algeria’s most important exports to the US, specifically hydrocarbons, from the imposed tariffs. However, Algeria has undertaken strategic responses including accelerating economic diversification, strengthening regional integration through the AfCFTA, and exploring new export markets in Africa and Asia. This state of affairs highlights the inherent fragility of the multilateral buying and selling machine in the face of such unilateral pressures. It underscores the vital importance for developing countries to undertake adaptive and resilient monetary strategies to navigate an increasingly unpredictable global trading environment.

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