Cover Story: Trump’s First 100 Days Back in Office Is Breaking World Order

Summary

In the first 100 days of Donald Trump’s second term as U.S. president, global order has become increasingly unstable, evidenced by the strained relationship with Canada and shifting alliances worldwide. Canadian Prime Minister Mark Carney, after his electoral victory on April 29, emphasized that Canada must remain vigilant against U.S. pressure, highlighting growing concerns among America’s closest allies. [para. 1][para. 2][para. 3] Trump’s rhetoric and actions—claiming to “run the country and the world”—have elevated the U.S. from being merely a superpower to a driver of global volatility. [para. 4]

Domestically, President Trump has implemented sweeping executive orders, reintroduced punitive tariffs, and overhauled federal agencies, resulting in rising inflation, declining market confidence, and plummeting approval ratings. The International Monetary Fund (IMF) has sharply downgraded America’s growth forecast, citing policy uncertainty as a drag on global GDP, while U.S.-China economic hostilities have seen tariffs rise up to 145% on Chinese goods and 125% on U.S. exports to China. [para. 5][para. 6] Traditional allies such as Canada and the UK have grown increasingly critical, as trust in American partnership diminishes. [para. 7]

Trump’s “reciprocal tariffs” initiative, announced on April 2, applied sweeping import duties on all trading partners, with immediate and sharp retaliation against China. Even after temporary reprieves, the global reaction included major market selloffs—the U.S. dollar, equities, and bonds all fell simultaneously, a rare “triple strike.” Business leaders, including Goldman Sachs’ David Solomon, warned the uncertainty was driving capital out of the U.S. The IMF revised global growth projections downward by 0.5% for 2025 and 0.3% for 2026, underscoring that the effective tariff rate (~25%) risked repeating the protectionist errors of the Great Depression. [para. 16][para. 17][para. 18][para. 19][para. 22]

Economic data signaled further trouble: The first quarter of 2025 saw U.S. GDP shrink by 0.3%. Consumer confidence, spending, and major service sectors showed significant weakness, while inflation expectations surged to levels unseen since 1981. Wall Street is increasingly pessimistic, with Fitch and the IMF lowering growth forecasts for 2025 and predicting inflation to exceed 3–4%. Federal Reserve Chair Jerome Powell admitted the constraints of monetary policy in addressing both inflation and unemployment under such turbulent conditions. [para. 23][para. 25][para. 27][para. 28]

Elon Musk, initially appointed as Director of the new Department of Government Efficiency (DOGE), encountered fierce resistance within government and cabinet. Public feuds and failed reform efforts led to his diminished role by May. Musk’s initiatives to slash federal bureaucracy and spending fell short, while litigation and criticism mounted, especially after notable actions such as the closure of institutions and layoffs. His public standing, as reflected by polls, plummeted as Tesla sales dropped and controversies mounted. [para. 29][para. 30][para. 31][para. 32][para. 33]

Trump’s administration also expanded its immigration clampdown to legal visa holders, green card residents, and international students, drawing legal challenges and alarming advocacy groups. Deportation rates remained steady, but the target profile shifted towards non-criminal and non-citizen residents, with a chilling effect on tourism and international perception of the U.S.—legal tourism dropped 10% year-on-year. [para. 35][para. 36][para. 38][para. 40]

Internationally, the U.S.’s unilateral policies have led to fraying alliances, notable volatility in U.S.-EU relations, and skepticism in traditional partnerships. Trump’s attempts to mediate peace in Ukraine and in the Middle East have been unsuccessful, often complicated by unclear proposals and lack of consensus among allies. Trade negotiations have become pressure-driven and transactional. [para. 47][para. 53][para. 57][para. 60][para. 63]

Overall, the world’s geopolitical landscape is shifting away from reliance on U.S. stability, with many countries hedging against ongoing volatility, and the restoration of global order increasingly in doubt. [para. 66][para. 67]