Follow these Trump 2.0 policies
US President Donald Trump signs executive orders in the Oval Office on January 20, 2025 in Washington, DC.
Anna Cashier | Getty Images
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What you need to know today
The 47th President of the United States
The president was Donald J. Trump. On Monday, he was sworn in at the White House and many executive orders began to be signed. took out”Full apologyFor those charged in connection with the attack on the US Capitol on January 6, 2021; The ban has been suspended for at least 75 days. TikTok in the United States; and created the Department of Government Efficiency, or DOGE, headed by Elon Musk.
A national energy emergency has been declared.
Trump on Monday declared a national energy emergency – part of a broader agenda aimed at increasing fossil fuel production – and ordered the US to withdraw from the Paris climate accord. In addition, the Biden administration has canceled various climate goals, such as achieving net zero emissions by 2050.
Trump is targeting tariffs.
Trump told reporters on Monday that he was considering imposing 25 percent tariffs on Mexico and Canada. He also targeted February 1 for implementation. He also released one Give a note He ordered federal agencies to review trade policies with other countries, particularly China, Canada and Mexico — but the memo stopped short of introducing new duties.
Biden’s apology
Former US President Joe Biden has granted pre-pardons to several family members, citing fears they could be targeted in “baseless and politically motivated investigations”. Biden on Jan. 6 apologized to members of Congress who investigated the Capitol riots and others he called “baseless” threats to political causes, including Anthony Fauci, Gen. Mark Miley, and others.
After graduation, Asian markets will rise
US markets were closed Monday for Martin Luther King Jr. Day. Stock futures were mostly lower on Tuesday after Trump said he was considering tariffs on Mexico and Canada. Asia-Pacific markets were flat on Tuesday. Hong Kong Hang Seng Index It increased by about 1%, while Korea Kospi index In December, the country’s headline inflation rose 1.7 percent year-on-year, down 0.1 percent.
(PRO) The first echo for the second time?
Some on Wall Street say Trump’s second term could have the same effect on certain asset classes as his first term. To find out, CNBC Pro looked at the performance of several assets during the first 100 days of Trump’s last presidency and asked analysts how those assets would fare.
Bottom line
Since then, Donald Trump has hit the ground running. Officially the 47th President of the United States, he signed several executive orders at his inauguration. Here are two main issues investors should keep an eye on.
Tariff
“To me, the most beautiful word in the dictionary is ‘tariff,'” Trump told the Economic Club of Chicago in October. Trump said on Monday that he was considering imposing 25% tariffs on imports from Canada and Mexico on February 1. On the campaign trail, Trump promised to impose tariffs of up to 20% and more than 60% on all imports into the United States. On Chinese products.
Governments impose tariffs ostensibly to protect domestic industries. Companies that import goods are mainly taxed by increasing costs. This leads them to look for local suppliers instead.
As supply chains are globally integrated and much of the manufacturing is done outside the US, companies may find it difficult to move production to local shores. The higher cost will probably be passed on to the consumer in the form of higher prices.
In other words, tariffs can cause more inflation.
displacement
“The invasion of our country will stop,” Trump promised supporters at a graduation event titled “Make America Great Again.” Like tariffs, strict immigration policies — or outright deportations — are typically aimed at protecting the domestic economy (among other reasons).
The theory is, the fewer people competing for each job opening, the easier it is to find a job.
But many parts of the U.S. economy, such as construction and agriculture, are dominated by undocumented immigrants, taking jobs that aren’t needed by residents. Even documented immigrants are vital to high-skill sectors like tech — as evidenced by Elon Musk’s clash with Trump supporters H-1B visas.
If reliable sources of labor disappear overnight, companies will have to raise wages to attract talent, which could reignite the dreaded wage-price spiral.
Other policies
Trump has promised several other economic measures, such as corporate tax cuts, legalization of cryptocurrency, and green energy subsidies.
Tariffs, however, may have the greatest impact on the global economy and financial institutions.
— CNBC’s Sam Meredith, Ryan Ermey, Annie Nova, Rebecca Picciotto, Evelyn Cheng and Lim Hui Ji contributed to this report.
