Trump's Day 1 Executive Actions: 4 Areas to Watch

As Donald Trump prepares to take office for his second non-consecutive term, investors and the public alike are eagerly awaiting his first-day executive actions. With a stack of orders ready for his signature, Trump is expected to make a significant impact on various sectors of the economy. Here are four key areas to watch as Trump's Day 1 executive actions unfold:

1. Immigration and Border Security
Trump's immigration policies are expected to have a significant impact on the economy and specific industries. His plans include declaring illegal immigration a national emergency, sending U.S. troops to support immigration agents, and restricting refugees and asylum. These actions could lead to mass deportations, disrupting industries that rely heavily on undocumented workers, such as construction, agriculture, and hospitality. According to the American Immigration Council, these industries have a high percentage of undocumented workers: construction (13.7%), agriculture (12.7%), and hospitality (7.1%). A mass deportation program could drive up the cost of housing, as homebuilders rely on immigrant labor for their workforces. Additionally, ending birthright citizenship could have implications for the healthcare industry, as it may lead to a decrease in the number of uninsured individuals, potentially reducing healthcare costs.


2. Trade and Tariffs
Trump's proposed tariffs on China, Mexico, and Canada could have significant economic consequences. Increased consumer costs, stimulated inflation, disruption of supply chains, potential retaliation, and potential job losses are all possible outcomes of these tariffs. Economists warn that Trump's proposed tariffs could boost inflation at a time when Americans are already frustrated with elevated prices. Higher tariffs could contribute to this inflation by increasing the cost of goods and services. If the U.S. imposes tariffs on these countries, they could retaliate with their own tariffs on U.S. exports, leading to a trade war that would be detrimental to the U.S. economy.