Keep an eye out for these Trump 2.0 policies

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The 47th president of the United States
President Donald J. Trump was sworn into the White House on Monday and began signing a flurry of executive orders. He issued “full pardons” to those charged in connection with the attack on the United States Capitol on January 6, 2021; halted, for at least 75 days, the application of a law that would prohibit TikTok in the United States; and created the Department of Government Efficiency, or DOGE, led by Elon Musk.

Declared national energy emergency
Trump on Monday declared national energy emergency —part of a broad agenda aimed at increasing fossil fuel production—and ordered the United States to withdraw from the Paris climate agreement. It also repealed the Biden administration’s various climate goals, such as achieving net-zero emissions by 2050.

Trump targets tariffs
Trump told reporters on Monday that he is considering imposing 25% taxes on Mexico and Canada.and is targeting February 1 for them to come into effect. He also issued a give a memo order federal agencies to Examine trade policies with other nations.especially China, Canada and Mexico, but the memorandum stopped short of introducing new tariffs.

Biden’s pardons
Former US President Joe Biden on Monday granted preventive pardons for several family members, citing concerns that they would be the subject of “baseless and politically motivated investigations.” Biden also granted pardons to Anthony Fauci, General Mark Milley, members of Congress who investigated the January 6 Capitol Riot and others who said they were under threat of being attacked “without foundation” for political purposes.

Asian markets rise after the inauguration
US markets were closed on Monday for Martin Luther King Jr. Day. Mostly stock futures went down on tuesday after Trump indicated he is considering imposing tariffs on Mexico and Canada. Asia-Pacific markets advanced tuesday. from hong kong Hang Seng Index added almost 1%, while Korea kospi index fell about 0.1%, as the country’s wholesale inflation rate for December rose 1.7% annually.

(PRO) Second time an echo of the first?
Trump’s second term could have the same effects on certain asset classes as happened in the first round, according to some on Wall Street. To find out, CNBC Pro analyzed the performance of several assets during the first 100 days of Trump’s latest presidency and asked analysts how those assets will fare.

Donald Trump has started working since officially becoming the 47th president of the United Statessigning numerous newly inaugurated executive orders. These are the two main themes that investors will pay attention to.

Rates

“To me, the most beautiful word in the dictionary is ‘tariff,'” Trump told the Economic Club of Chicago in October. Trump said Monday that he is considering imposing 25% tariffs on goods from Canada and Mexico before February 1st. During the election campaign, Trump promised to impose a Universal rate of up to 20%. on all imports to the US and more than 60% on Chinese products.

Governments impose tariffs ostensibly to protect domestic industries. Companies that import goods pay what is essentially a taxincreasing costs. This pushes them to look for local suppliers.

Because supply chains are so globally integrated and much manufacturing takes place outside the U.S., companies may find it difficult to move production to local shores. So the higher costs will likely be passed on to the consumer. in the form of price increases.

In other words, tariffs could cause more inflation.

Deportations

At a pre-inauguration event titled “Make America Great Again Victory Rally,” Trump fiance to his followers that “the invasion of our country will be over.” Like tariffs, stricter immigration policies (or outright deportations) are generally enacted to protect the national economy (among other reasons).

The theory is that with fewer people competing for each open position, it will be easier to get a job.

But many parts of the American economy, such as construction and agriculture, are served by undocumented immigrantswho take on jobs that are undesirable for residents. Even documented immigrants are crucial for higher-skilled sectors like tech, as evidenced by Elon Musk’s fight with Trump supporters over H-1B visas.

If reliable sources of labor disappear overnight, companies will have to raise wages to attract talent, which could reintroduce the prospect of the dreaded wage-price spiral.

Other policies

Trump has promised many other economic measures, such as corporate tax cuts, legitimizing cryptocurrencies, and withdrawing green energy subsidies.

However, tariffs could have the biggest impact on the economy and financial institutions globally.

— CNBC’s Sam Meredith, Ryan Ermey, Annie Nova, Rebecca Picciotto, Evelyn Cheng and Lim Hui Jie contributed to this report.