Executive Orders and Actions: Trump Unleashes Historic Wave
Energy Focus
President Donald Trump commenced an unprecedented series of executive orders and actions upon his reinstatement, encompassing various sectors of interest to investors. Energy emerged as an immediate priority. He approved the withdrawal from the Paris Climate Accords and imposed a regulatory freeze on energy-related industries. Additionally, Trump plans to invoke a national energy emergency, empowering the presidency to enhance energy production nationwide.
Inflation and TikTok
Trump also issued a presidential memorandum on inflation, directing federal agencies to provide "emergency price relief" to mitigate rising costs. Regarding TikTok, he promised to respite the social media platform from a law that mandates its ban, although the legality of such action remains uncertain.
Tariffs
The president outlined his trade vision, reiterating his preference for tariffs but refraining from immediate implementation. This decision was met with initial market optimism. US stock markets were closed on Monday, but S&P 500 futures surged while the US dollar index declined amidst indications of delayed tariffs.
Immigration and Regulations
Trump prioritized immigration, with orders expected to facilitate enforcement actions in the US and at the southern border. He also utilized his authority to terminate a government immigration app immediately after taking office. While economic consequences may take effect gradually, Trump vowed to commence mass deportations.
In the energy sector, he aims to expedite the empowerment of energy companies through executive orders designed to cut red tape and regulations. Access to natural resources is a central aspect of the Trump administration's energy plans.
Paris Climate Accords and Energy Emergency
Trump formally withdrew from the Paris Climate Accords, an international climate agreement he had previously abandoned and Biden subsequently rejoined. He rationalized the move by citing high energy prices as an undue burden on consumers and the need for increased energy supply to support advancements in artificial intelligence.
Tariffs Revisited
Despite Trump's earlier pledge to impose tariffs on Canada and Mexico, no immediate action was taken. However, the president remains likely to prioritize tariffs in the coming weeks, potentially implementing them more gradually to avoid market volatility.
TikTok and Federal Bureaucracy
Trump also addressed TikTok's fate in the US, promising an order to grant the company a reprieve. However, no such order has yet been announced or signed, raising questions about the extent of his authority in this matter.
Furthermore, Trump emphasized his control over the federal bureaucracy, implementing a hiring freeze on federal workers, including those at the Internal Revenue Service. He also announced plans for pardons related to the January 6, 2021, Capitol attack.
Senate Confirmations
Trump submitted several long-anticipated nominations to the Senate, including Treasury nominee Scott Bessent. Bessent is expected to receive swift confirmation, potentially as early as this week.
This post will be updated with ongoing developments.