Economic pragmatism and political strategy: What’s next under Trump?

The future of deals under Donald Trump’s Presidency appears to rest on two key principles: first, adopting practical solutions that align with the realities on the ground, and second, pursuing economic pragmatism, where financial gains take centre stage in shaping political dynamics.

Recently, Israel presented Trump with what it called a Gaza truce deal, or more accurately, a hostage release deal. Trump took credit for it and, in turn, lifted the sanctions imposed by the Biden administration on Israeli settlers. As seen in the past, whenever Israel deescalates tensions on one front, it shifts its focus to another. This time, it is the West Bank.

The escalation In the West Bank is not surprising. Israel’s actions follow a predictable pattern. Declaring the West Bank as one of its seven threat fronts implies a deliberate push to redraw the geographical and political landscape of the region. In the West Bank, Israel is paving the way for political ambitions, including the forced displacement of communities and the formal annexation of parts of the territory. 

This aligns with Prime Minister Netanyahu’s efforts to preserve his government’s coalition by making significant concessions to far-right leaders like Bezalel Smotrich. Trump’s return to power could provide Israel with a favorable environment to carry out such plans with little resistance.

From Jordan’s perspective, this shifting reality presents significant challenges. The West Bank, being a neighbouring front, directly impacts Jordan. Germinating this sensitive issue would make finding solutions increasingly difficult without unconventional approaches. The situation appears to be heading toward decisive outcomes rather than prolonged stalemates.

Since October 7, the rapid changes in the region have compelled Jordan to reassess its political strategies. The priority is not just to reevaluate its positions but to develop the capacity to navigate the complexities of the emerging political landscape. Jordan must address two pressing questions: how to deal with the fallout from the West Bank and how to manage relations with a new Trump administration. 

Jordan’s strategy must focus on three core elements: realism, adaptability to change, and finding a proactive role in the region. A key realization is that old alliances may lose their value if they no longer serve economic interests. 

Jordan’s geographical position can serve as a cornerstone for its future strategy. By leveraging regional mega-projects and transforming its location into a hub for regional development, Jordan can play a larger role. The country’s economic challenges are too complex to solve with domestic efforts alone. Instead, Jordan needs to integrate itself into broader regional plans to avoid becoming merely a recipient of crises without reaping any benefits. 

The Jordanian government, committed to being a hands-on administration focused on economic recovery and tangible progress, must prioritise building regional economic partnerships. It should create opportunities and remove obstacles for the private sector, positioning it as a driver of regional integration. Simultaneously, the public sector must adapt to regional changes and maximize Jordan’s border dynamics positively—whether through future ties with Syria or greater collaboration with Saudi Arabia’s ambitious projects. 

The return of Donald Trump, coupled with significant regional changes, from Gaza to Lebanon, Syria, and the decline of Iran’s influence, makes economic pragmatism the hallmark of this new US administration. This could create opportunities for ambitious projects such as infrastructure development, energy initiatives, transportation networks, and trade routes across both land and sea. 

In essence, addressing Trump’s economic pragmatism requires a realistic and calculated political approach. For Jordan, the key lies in transforming its challenges into opportunities by embracing regional integration and maintaining a forward-looking strategy.