What to look out for as Trump 2.0 era starts

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Trump says he will declare a national emergency
US President Donald Trump said on Monday that he had declare a national energy emergency — part of a broad agenda that aims to increase fossil fuel production — end what he called the “Green New Deal,” and withdraw the United States from international commitments to fight climate change.

Optimistic about Trump’s tenure
Trump’s return to the White House has caused consternation among some countries because of his threat of tariffs and unpredictable foreign policies. But people in many other countries are optimistic about Trump 2.0said the think tank of the European Council for Foreign Relations, as it published a global survey on wednesday

$MELANIA and $TRUMP
First Lady Melania Trump launched its own meme coincalled “Melania”, Sunday evening. The token is currently trading at $4.20, down from a high of around $13. On Friday, Trump also announced a meme coin called “Official Trump”. At the peak of token prices, the Trump family net worth increased by billions of dollarsbased on the action of their newly launched digital assets.

Biden’s pardons
Former US President Joe Biden on Monday issued preventive pardons for several family members, citing concerns that they would be targeted by “baseless and politically motivated investigations.” Biden also issued pardons for Anthony Fauci, Gen. Mark Milley, members of Congress who investigated January 6 Revolution of the Capitol and others that he said were under threatens to be targeted “without basis”. for political purposes.

The euro and the pound strengthened against the dollar
US markets were closed on Monday for Martin Luther King Jr. Day. The pan-European Stoxx 600 Index increased by 0.05%. U euros and British pound strengthened against the US dollar, as has been reported that Trump would not impose tariffs on US trading partners on his first day in office.

[PRO] The second time an echo of the first?
Trump’s second term could have the same effects on certain asset classes as he did the first time, according to some on Wall Street. 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.

Donald Trump is officially the 47th president of the United States – and plans to hit the ground running. Trump promised sign more than 50 executive orders fresh out of his inauguration, according to a person in his transition operation. These are the two main issues that investors are keeping an eye on.

Fees

“To me, the best word in the dictionary is ‘tariff,'” Trump told the Chicago Economic Club in October. On the campaign trail, Trump promised to impeach a universal rate of 20%. on all imports to the United States, 25% on goods from Canada and Mexico and more than 60% on Chinese products.

Tariffs are imposed by governments to ostensibly protect domestic industries. Companies that import goods pay what it is essentially a taxincrease costs. This prompts them instead to look for local suppliers.

With supply chains so integrated around the world, and most manufacturing done outside the United States, companies can find it difficult to shift production to local shores. The higher costs, therefore, will likely be passed on to the consumer in the form of increased prices.

In other words, the tariffs could lead to more inflation.

Deportations

At a pre-inauguration event titled “Make America Great Again Victory Rally,” Trump promised to his supporters that “the invasion of our country has to come to a halt”. Like tariffs, stricter immigration policies—or outright deportations—are typically enacted to protect the domestic economy (among other reasons).

The theory is that with fewer people competing for each open job, it will be easier to gain employment.

But many parts of the US economy, such as construction and agriculture, are employed by undocumented immigrantswho take unwanted jobs for residents. Even documented immigrants are crucial for the most skilled sectors like technology – as evidenced by Elon Musk’s fight with Trump supporters. H-1B visa.

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 several other economic measures, such as corporate tax cuts, the legitimization of cryptocurrency and the withdrawal of green energy subsidies.

Tariffs, however, 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.