U.S. President Trump signs an executive order in the Oval Office in Washington, DC on January 20, 2025
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What you need to know today
The 47th President of the United States
President Donald J. Trump Sworn in the White House Monday and began signing a series of executive orders. He issued “full pardon” Halts enforcement of a law prohibiting enforcement of the law for at least 75 days against those charged in connection with the January 6, 2021 attack on the U.S. Capitol TikTok in the United States; and created the Department of Government Effectiveness (DOGE) led by Musk.
Declaring a national energy emergency
Trump on Monday Declaring a national energy emergency – part of a sweeping agenda to increase fossil fuel production – and order the U.S. to withdraw from the Paris climate agreement. He also rescinded various climate goals of the Biden administration, such as achieving net-zero emissions by 2050.
Trump targets tariffs
Trump told reporters on Monday he was considering enacting 25% tariff on Mexico and Canadaand is scheduled to take effect on February 1. He also posted propose memo direct federal agencies Review trade policies with other countriesSpecifically China, Canada and Mexico, but the memorandum did not introduce new tariffs.
Biden’s pardon
Former U.S. President Joe Biden on Monday Issue preemptive pardons For several family members, the reason was concerns that they would be the target of “baseless and politically motivated investigations.” Biden also pardoned Congressman Anthony Fauci and General Mark Milley who investigated the matter. Capitol riots on January 6 and others he said Threats become ‘unwarranted’ targets for political purposes.
Asian markets rise after inauguration
U.S. markets were closed Monday for Martin Luther King Jr. Day. Mainly stock futures Slightly lower on Tuesday That comes after Trump said he was considering imposing tariffs on Mexico and Canada. Asia Pacific market Tuesday first. Hong Kong Hang Seng Index increased by nearly 1%, while South Korea composite stock price index As the country’s wholesale inflation rate rose by 1.7% year-on-year in December, the inflation rate fell by approximately 0.1%.
(PRO) Is the second time an echo of the first?
Trump’s second term may be have the same impact on certain asset classes Some on Wall Street say it’s the same story as in the first round. To find out, CNBC Pro looked at the performance of multiple assets during the first 100 days of Trump’s last presidential term and asked analysts how they performed.
bottom line
Donald Trump has been going all-in since Officially sworn in as the 47th President of the United StatesAfter taking office, he signed a number of executive orders. Here are the two main questions investors will be paying attention to.
tariff
“To me, the most beautiful word in the dictionary is ‘tariffs,'” Trump told the Economic Club of Chicago in October. Trump said on Monday he was considering imposing 25% tariff on Canadian and Mexican goods Before February 1st. General tariffs as high as 20% All imports into the United States and beyond 60% are Chinese products.
The government imposes tariffs ostensibly to protect domestic industry. The fee paid by a company that imports goods is essentially a taxpushing up costs. This prompted them to turn to local suppliers.
Because supply chains are so integrated globally and most manufacturing is done outside the United States, companies may find it difficult to move production locally. Then, higher costs may be passed on to consumers in the form of price increases.
In other words, tariffs could lead to more inflation.
deportation
Trump at a pre-inauguration event titled “Make America Great Again Victory Rally” promised To his supporters “the invasion of our country will stop”. Like tariffs, stricter immigration policies (or outright deportations) are often done to protect the domestic economy (among other reasons).
The theory is that the fewer people competing for an open position, the easier it is to obtain employment.
But many sectors of the U.S. economy, such as construction and agriculture, are at a standstill. staff made up of undocumented immigrantstaking jobs that residents don’t like. Even documented immigration is critical to high-skill industries like technology — as evidenced by Musk’s spat with Trump supporters over immigration. H-1B visa.
If a reliable source of labor disappears overnight, companies will have to raise wages to attract talent, potentially raising the prospect of another horrific wage-price spiral.
Other policies
Trump has also promised a host of other economic measures, such as corporate tax cuts, legalizing cryptocurrencies and eliminating green energy subsidies.
However, tariffs may have the biggest impact on the economy financial institution worldwide.
—CNBC’s Sam Meredith, Ryan Ermey, Annie Nova, Rebecca Picciotto, Evelyn Cheng and Lim Hui Jie contributed to this report.
