Global Reactions to Donald Trump’s Election Victory: Economic, Strategic, and Diplomatic Responses from Iran, China, and Russia

Nov 8

Executive Summary

Donald Trump’s presidential win has prompted swift and calculated responses from global powers, particularly Iran, China, and Russia. Each nation is preparing for anticipated policy shifts, reflecting the priorities Trump held in his previous term. Iran is bracing for renewed sanctions, economic pressure, and potential support for Israel's regional actions. China expects the U.S. to resume a hard-line trade stance, considering tariff increases and economic decoupling, which has already impacted Chinese markets and production strategies. Russia perceives an opportunity for strategic realignment, especially regarding NATO and Ukraine, as Trump’s potential reduction of U.S. support for Kyiv could shift the dynamics of the conflict. The global reaction underscores each country’s tailored strategy in response to Trump’s known policy positions.

Analysis

Iran’s Economic Concerns and Political Calculations

Following Trump’s election victory, Iran’s economy saw immediate repercussions, with the rial plummeting to record lows against the dollar as public and government concern grew over the likelihood of intensified sanctions. Iran is preparing for economic strain, with expectations that Trump will reintroduce severe restrictions on its financial institutions, oil exports, and trade relationships, further isolating the nation economically. Iran’s Central Bank and financial institutions have increased efforts to stabilize the currency, but public anxiety remains high as the specter of heightened sanctions looms.

Iranian officials, particularly those within the Supreme National Security Council, anticipate Trump’s presidency will align U.S. policy with Israel’s interests in the Middle East. This expectation includes the potential for increased American support of Israeli military actions against Iranian-backed groups in Gaza, Lebanon, and Syria. Iran’s state media has downplayed Trump’s win to avoid inciting further public fear, yet internal security briefings indicate that officials are concerned about escalation in conflicts involving Israeli or U.S. forces in the region.

Iran’s diplomatic strategy in response to the election focuses on strengthening alliances with other sanctioned nations, including Russia and China. The government has initiated dialogues to secure support in circumventing sanctions and exploring alternative markets. Iran’s military leadership has also communicated that it will maintain its missile program despite potential U.S. pressures, framing it as a necessary defense mechanism against increased threats.

China’s Economic and Strategic Adjustments

China’s government responded diplomatically to Trump’s election, with President Xi Jinping congratulating Trump while underscoring hopes for a “stable and productive relationship.” However, Chinese financial markets reacted with caution. The possibility of Trump reviving his previous tariffs—potentially increasing them to 60% on certain imports—has spurred several multinational companies, including Steve Madden, to consider shifting production outside of China to avoid expected cost increases.

The Ministry of Commerce in China has held emergency meetings to explore potential countermeasures against anticipated tariffs, as the trade imbalance remains a sensitive point in U.S.-China relations. With Trump’s commitment to reducing the U.S. trade deficit, Chinese officials expect significant disruptions to export sectors, including technology and consumer goods, should tariffs be reinstated. The Chinese government has started exploring policy adjustments to strengthen domestic markets and reduce reliance on exports, aligning with Xi Jinping’s “dual circulation” strategy.

Beyond trade, military dynamics in the Indo-Pacific region are expected to shift under Trump’s leadership. China’s military has increased patrols near Taiwan and in the South China Sea, preparing for the likelihood that Trump will continue his previous support of Taiwan and maintain U.S. presence in contested waters. The Chinese People’s Liberation Army (PLA) is bolstering its naval and air force capabilities around these areas, while the Ministry of Defense has issued statements urging the U.S. to avoid actions that would “threaten peace” in the region. These responses indicate China’s expectation of intensified U.S. support for Taiwan, which could lead to further diplomatic friction.

Russia’s Strategic Calculations and Prospects in Eastern Europe

Russian President Vladimir Putin publicly welcomed Trump’s victory, viewing it as an opportunity to revisit diplomatic engagements that were limited under previous administrations. Kremlin advisors, including Foreign Minister Sergey Lavrov, have noted that Trump’s prior skepticism of NATO aligns with Russia’s strategic interests, particularly in Eastern Europe. Trump’s calls for European nations to bear a larger share of defense spending echo Russia’s long-standing stance on reducing U.S. military presence in Europe.

However, Moscow is carefully observing Trump’s stated commitment to ending the conflict in Ukraine. Trump’s criticism of U.S. military aid to Kyiv has raised concerns among European NATO members about a potential decrease in American support, which could alter the balance of power in the region. Russian officials have suggested that reduced U.S. assistance to Ukraine may pave the way for renewed Russian advances, with analysts within the Ministry of Defense advocating for expanded military exercises near Ukraine’s borders. Additionally, Russian state media has amplified narratives suggesting that Trump’s election may lead to a more favorable environment for negotiating sanctions relief, particularly in the energy sector.

Russia is simultaneously managing diplomatic engagement with Iran, especially given Trump’s strong stance on Tehran. Russian officials have assured Iranian counterparts of continued economic and military collaboration, including the potential for shared development projects in energy and defense. Russian analysts believe that bolstered support for Iran could provide leverage in any potential U.S.-Russia negotiations.

Broader Geopolitical Impact and Regional Dynamics

Trump’s election has also affected regional dynamics, as countries within NATO and the Indo-Pacific region brace for potential changes in U.S. foreign policy. European leaders, concerned about a potential recalibration of U.S. support for NATO, have increased discussions on strengthening internal EU defense capabilities. The European Parliament is actively exploring budget expansions for defense initiatives, anticipating that Trump may prioritize U.S. domestic interests over international alliances.

In the Middle East, Trump’s alignment with Israeli interests raises the possibility of escalated conflicts involving Iran-backed groups in Lebanon, Syria, and Iraq. Analysts within Israeli defense circles anticipate closer cooperation with the U.S. on military actions, particularly if Iran resumes its nuclear activities. Regional tensions are also rising as Gulf states, including Saudi Arabia and the UAE, evaluate potential impacts on their alliances with the U.S. and Israel.

In the Indo-Pacific, nations like Japan and South Korea are reviewing defense policies, preparing for a scenario where the U.S. may intensify its counter-China strategy. These countries are bolstering their own military capacities and exploring expanded cooperation with other allies to safeguard their interests in the face of China’s assertive posturing and potential shifts in U.S. policy.

Final Thoughts

Trump’s return to the presidency is catalyzing adjustments across Iran, China, and Russia, each of which is preparing for shifts in U.S. policy based on Trump’s previous approaches to trade, military support, and international diplomacy. While Iran braces for intensified economic sanctions, China prepares for renewed trade conflicts, and Russia sees opportunities for strategic realignment, each nation’s response reflects careful planning to navigate the anticipated challenges. These developments indicate that global power dynamics are entering a new phase, influenced by Trump’s established policy positions and their far-reaching implications.