Global Turmoil: How Trump's Decisions are Shaping Economies and Politics

Anton Kirichenko -

In an era defined by volatility and unpredictability, one leader’s decisions have rippled across borders, reshaping entire nations’ economies and political landscapes. According to The Economist’s special edition for 2026, the current global environment is increasingly “Trump-dependent,” where the movements of U.S. President Donald Trump dictate international economics, geopolitics, and even the essence of capitalism.

The Trump Effect on Global Economics

Under Trump’s leadership, traditional economic models have been overshadowed by a more impulsive and immediate approach to global trade and finance. The U.S., as a financial powerhouse, finds its policies reacting not only to structured policy announcements but also to Trump’s spontaneous declarations on platforms like social media. This has ushered in a new normal where Trump’s words can cause market upheavals and redirect investment strategies overnight.

According to ColombiaOne.com, his approach emphasizes protectionism, an America-first industrial policy, and short-term transactional benefits over long-lasting multilateral cooperation, fundamentally challenging how nations plan their economic futures.

Rethinking Geopolitical Alliances

As the world grapples with shifting alliances, many worry over an emergent Cold War 2.0 between the U.S. and China. Yet, The Economist proposes a more unpredictable scenario: a global order crafted by Trump’s instinctive, leader-to-leader diplomacy. This speculative ensemble involves established powers like the U.S., Russia, and China, dividing the world into spheres of influence—framed not by ideology, but rather negotiation.

This fluidity in global diplomacy extends to alliances, as former political norms fade and nations strive for favor with Washington amid newfound unpredictability.

Transformation of Defense and Capitalism

Amidst this reshaping, defense strategies have veered towards catering to Trump’s mandates for increased military expenditure. Nations are compelled to rethink their NATO commitments and military strategies as a direct response to Trump’s expectations.

Furthermore, Trump’s internal economic policies twist traditional capitalism into an economically nationalist framework. Here, state interventions mix with market forces, creating a politically driven form of capitalism where companies align with Trump’s agendas to secure advantages. This fusion marks a departure from open competition to a mixed system of corporate and state negotiations.

In conclusion, this “Trump-dependent” lens offered by The Economist is not merely speculative or critical; it details an ongoing geopolitical reality. Whether stabilizing or continuing its escalatory path, the world finds itself recalibrating under the shadow of Trump’s presidency, where his unpredictable influence continually shapes global strategy. And as The Economist starkly summarized: “This is Donald Trump’s world. We just live in it.”