The U.S. presidential election of November 2024, marked by strong polarization, presented a victorious Donald Trump, whose discourse focused on the welfare of his country, which many labeled as populist, and some even described as hyper-nationalist. Campaign promises such as managing immigration and improving the U.S. economy were central to his agenda.

Upon taking office on January 20, the world once again encountered a unique style of leadership, one that is summed up in the motto. "promise made, promise kept".. While some are shocked by his international policies based on pressure to negotiate, the reality is that so far this strategy has shown results.

As a child, I learned from my father - who negotiated international agreements in the private sector - that one must seek the convenience of the party one represents. In extensive family conversations, I understood that the key is to reach an agreement that benefits all parties. It seems, for some time now, there was one party that was being hurt by international relations. But, as in any negotiation, there are points of compromise and points of gain. Trump's strategy of applying tariffs forces the counterparts to sit down and negotiate. Interestingly, these negotiations have been swift, requiring only a few hours to reach agreements.

What is interesting is that, so far, the demands do not appear to be excessive. In fact, if Mexico and Canada have agreed to the terms set by Washington, it is probably in their interest to do so as well.

President Trump was elected, in part, for promising solutions to the everyday problems facing U.S. citizens: from illegal immigration and drug trafficking to inflation and fentanyl trafficking. These issues, of great relevance to the average person, seem to have surpassed in importance other discussions of a value or social nature, such as the use of appropriate pronouns.

With less than four years to go, this unconventional style of leadership is expected to continue. If it continues to be successful, it could set a precedent for future presidents, both in the United States and in other nations.

The focus on the interests of the citizens who elected him could become a lesson for leaders around the world, and it would not be surprising to see more voters demanding similar leadership, something that is already beginning to happen.

In this scenario of change, we see how the market has become aware that policies are sometimes taken too apocalyptically. An example of this is the dollar in Chile, which prior to the inauguration of Donald Trump as 47th president of the United States was above $1,015, and - a curious thing - at this moment we are with a parity closer to $970, with copper at 4.5.

These are signs that what looked terrible for the market, based on almost the entire market, is not so scary in the end. Hopefully this will be the tipping point for a weaker dollar in Chile, something closer to the $780-$820 range, seen in the first half of 2023.

Gustavo Gallardo, CMT

Assistant Manager of Sales and Trading Fynsa Money Desk