Trump’s Day One: Immediate Actions on Tariffs, Crypto, Energy, and Immigration
As Donald Trump prepares for his return to the White House, significant changes are expected on his first day back in office. Leveraging the International Economic Emergency Powers Act, Trump seems poised to act swiftly on executive orders that could affect various sectors of the economy, including tariffs, cryptocurrency, energy, and immigration. Much like President Joe Biden did during his inauguration, it is anticipated that Trump will issue numerous directives to reverse policies from his predecessor. This article offers a detailed guide on what investors may expect from Trump’s upcoming actions on January 20.
Tariffs: Striking Hard with Economic Leverage
Throughout his 2024 presidential campaign, Trump has advocated for universal tariffs of 10% to 20% on all imports and a staggering 60% on Chinese imports. During a recent announcement, he pledged that one of his first executive orders would impose a 25% tariff on imports from Mexico and Canada, contingent upon those countries aiding in the fight against illegal immigration and drug trafficking.
This tariff strategy could significantly affect the U.S. automotive sector, as both Mexican and Canadian supply chains are closely linked to American automakers. Following Trump’s announcement, shares of car manufacturers experienced a sell-off. Additionally, consumers may feel the impact as vehicle prices could rise across the board, especially given that many American-made cars contain imported parts.
Trump’s proposal also includes a 10% tariff on Chinese imports unless that country ceases to facilitate illegal drug trafficking into the U.S. Industries reliant on semiconductors and electronics, which import a substantial portion of their components, may feel acute pressure from such tariffs. While there remains uncertainty about whether Trump will follow through with these tariffs or use them merely as a negotiation tactic, legal experts highlight that he has a robust framework under the International Economic Emergency Powers Act to enact substantial tariffs, substantially shaping global trade dynamics.
Crypto: A New Dawn for Digital Currency?
Big players in the cryptocurrency space heavily supported Trump’s 2024 campaign and have high expectations for pro-crypto policies in his administration. Rumors suggest that during his first 100 days in office, Trump could issue executive orders aimed at establishing a U.S. bitcoin reserve, enhancing banking access for the industry, and creating a crypto advisory council.
Analysts predict significant volatility in bitcoin prices, with potential to surge above $125,000 or drop toward $77,000 based on Trump’s immediate follow-through on promises made to the crypto industry. His vision of establishing the U.S. as the “crypto capital of the internet” could entice significant investments and reshape the landscape of digital currency in America.
Energy: Returning to Fossil Fuels and Resource Independence
In the realm of energy, Trump aims to reverse many policies put in place by the Biden administration. At a recent rally, he vowed to sign Day One executive orders to end restrictions on energy production, lift bans on liquefied natural gas exports, and reopen the Arctic National Wildlife Refuge for exploration. He also promised to dismantle Biden’s electric vehicle mandate.
While experts express optimism that Trump’s actions could lower fossil fuel prices, there are mixed feelings regarding the impact on oil and gas company stocks. Moreover, if Trump intends to withdraw from the Paris climate accord again, this could lead to substantial ramifications for the U.S. standing in global climate policy discussions.
Immigration: A Focus on Border Control
Trump’s return to power will likely see a renewed focus on immigration policies. Reports suggest he may issue up to five executive orders dedicated solely to addressing illegal immigration. These measures might include declaring a national emergency to allocate military resources for border wall construction and sweeping arrests of undocumented immigrants.
Industries heavily reliant on undocumented labor, such as construction, agriculture, and hospitality, could face considerable disruptions from Trump’s stringent immigration approach. Notably, Trump’s pledges to end Biden’s parole-like programs for migrants and attempts to invalidate birthright citizenship guarantee legal challenges ahead.
What Lies Ahead?
The upcoming executive actions by Donald Trump are likely to generate considerable reactions across various sectors, ultimately reshaping economic strategies, international trade policies, and the digital financial landscape. Investors should remain vigilant as the ramifications of these potential orders will likely have far-reaching consequences for the markets and overall financial well-being.
As the inauguration date approaches, both supporters and critics will be watching closely to understand what actions Trump will take on his return to the presidency. The intention to invoke national emergencies to justify such moves speaks to a broader approach to governance and economic management under his administration.