On his first day back in office, President Donald Trump issued a series of executive orders and directives aimed at shaping key sectors of the economy, with significant implications for businesses and investors.
Energy policy was a top priority. Trump declared a national energy emergency, triggering new presidential powers intended to boost domestic energy production. The president also formally withdrew the U.S. from the Paris Climate Accords and enacted a regulatory freeze to limit new rules and restrictions. One of the key actions, titled “Unleashing American Energy,” focused on promoting expanded exploration on federal lands and waters.
“The inflation crisis was driven by reckless spending and rising energy prices,” Trump stated in his inaugural address. “We will drill, baby, drill.”
On the trade front, Trump outlined his tariff strategy, reaffirming his belief in tariffs as a powerful tool, which he described as “the most beautiful word in the dictionary.” While he refrained from imposing any new tariffs immediately, the president made it clear that significant tariffs are on the horizon. “We are thinking in terms of 25% on Mexico and Canada,” he said, with plans to enact the duties starting February 1. Trump also hinted that tariffs on China are under consideration, but no immediate decisions were made as negotiations continue.
Beyond energy and trade, the president signed a number of other executive actions. Among them, a memorandum establishing Elon Musk’s proposed “Department of Government Efficiency” and a directive on inflation, which ordered heads of executive agencies to deliver emergency price relief measures.
Additionally, Trump moved to reshape the federal workforce by rescinding 78 executive orders from the previous administration. He also addressed ongoing legal issues surrounding TikTok, signing an action that could potentially delay a ban on the app. While Trump expressed support for TikTok, he cautioned that “TikTok is worthless if I don’t approve it.”
Despite the U.S. stock markets being closed for the Martin Luther King Jr. holiday, S&P 500 futures showed an increase. Meanwhile, the U.S. dollar index, which had been at a two-year high, dipped initially amid expectations of delayed tariffs, but rebounded later in the day.
Looking ahead, Capital Economics cautioned in a note on Monday that market volatility is likely to persist, with uncertainty surrounding future policy actions adding to the instability. The U.S. stock market will reopen on Tuesday.
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