Is Donald Trump learning to deal with the Democrats?

When Donald Trump came to office it was “his way or the highway” as many of his previously close staff will confirm. He attempted to push through healthcare reforms, which were blocked by Congress, and he has seen a number of his headline policies falling by the wayside. So, after dinner with Democratic leaders earlier this week it is believed that Donald Trump is willing to work together to pass the Deferred Action for Childhood Arrivals (DACA) Act. This is a scheme which protects 800,000 vulnerable children, who arrived in the US illegally, from deportation in the future.

A sign of things to come

There is no doubt that word of Donald Trump’s cooperation with the Democrats caught many by surprise but then again this is a man who does what he wants. There is some speculation that compromise on DACA would see Donald Trump raising the necessary funds to build the wall between the US and Mexico. How ironic, trading an act to save immigrant children to building a wall to keep immigrants out!

Donald Trump deal with Democrats
Is Donald Trump learning to deal with the Democrats?

Different views and different language

While the Democrats are obviously pleased to “get one over” Donald Trump, the president has been taking a very different approach. While confirming that the parties will work together to renew the DACA Act, he is adamant this does not include citizenship or an amnesty but will simply see the government “looking at allowing people to stay here”. This is a very interesting choice of words because nothing is guaranteed and we know that Donald Trump, while perhaps a man of his word, can stretch the truth a little when it suits him.

It will be interesting to see how the situation progresses in the short term and whether indeed any cracks start to appear. If, and this is a big if, Donald Trump can work with this Democratic counterparts then maybe, just maybe, we could be on the verge of a more settled political scene with all parties pulling in the same direction?

Much work to do

If we look at personal taxes, corporation taxes and the real estate markets, these are areas in which Donald Trump promised to be more active but has yet to deliver. It is extremely unlikely that he will not use the DACA situation to push through some of his more controversial policies with a tit-for-tat exchange. Even though both parties are currently shaking hands and smiling at one another, behind-the-scenes there is still extreme bitterness and a sense of revenge.

There is no doubt that this more stable political scene will help the US stock market and help to bolster investor sentiment. We have seen a couple of “wobbles” on the stock market just lately but share prices have bounced back fairly quickly. That is not to say there may not be difficulties ahead but political uncertainty was the name of the game amongst many investors hence their profit-taking over the last few weeks.

The rebirth of Donald Trump

Could it be that Donald Trump has finally realised he cannot take on the establishment on his own? Does he have a few surprises up his sleeve now the Democratic Party owes him one? Those Democrats who think they have Donald Trump on the rack may need to think again. This is a man who may show buffoonery in public but behind-the-scenes he is a sharp operator and nobody’s fool.

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