Trump's Day One: A Tsunami of Executive Orders Focusing on Energy, Inflation, and Immigration – But What About Tariffs?

As President-elect Donald Trump prepares to take office, he has announced a flurry of executive actions, memorandums, and proclamations that will be signed on his first day. These actions, totaling roughly 200, aim to undo Biden administration mandates and implement Trump's "America first" policies. Here's a closer look at some of the key areas in focus and the potential implications for the U.S. economy and markets.



Energy and Inflation

Trump plans to declare a national energy emergency and issue a presidential memorandum on inflation. These moves are expected to cut red tape and regulations for the energy industry, aiming to lower energy prices for American consumers. However, the impact on renewable energy prices is uncertain. While lower energy prices could make fossil fuels more competitive, it could also make renewable energy more affordable, as the cost of renewable energy technologies continues to decline.

Trump also plans to end the electric vehicle mandate, which could slow down the adoption of electric vehicles and hinder the growth of the renewable energy sector. According to the International Energy Agency, electric vehicle sales reached 6.75 million in 2021, a 41% increase from 2020. Ending the mandate could reverse this trend, hindering the growth of the renewable energy sector.

Immigration

Trump's immigration policies, as outlined in the provided information, could have significant impacts on the U.S. economy and labor market. Some potential effects include increased deportations and stricter immigration enforcement, which may slow down economic growth and job creation. Additionally, stricter immigration enforcement could lead to labor shortages in certain sectors, such as agriculture and hospitality, where immigrants make up a significant portion of the workforce. This could drive up wages for remaining workers but may also lead to increased prices for consumers.

Tariffs: The Missing Piece

While Trump has threatened tariffs on various countries in the past, it remains unclear whether he will follow through with these plans on his first day in office. According to an incoming White House official, Trump will only sign a memorandum telling federal agencies to study trade issues, suggesting that he may be pausing or delaying any tariff-related actions.

The decision to pause and study tariffs was a sign to the Canadian government that it should be prepared for almost all possibilities on the direction of trade with the United States. Canadian Finance Minister Dominic LeBlanc stated, "Perhaps he's made decisions to sort of suspend the threat of tariffs over a whole slate of countries. We will wait and see."

The potential impact of tariffs on the U.S. economy and markets is significant, as they can affect consumer prices, production costs, and international trade. However, without concrete actions from Trump on his first day, the extent of these impacts remains uncertain.

In conclusion, Trump's executive orders focusing on energy, inflation, and immigration are expected to have significant impacts on the U.S. economy and markets. However, the potential consequences of these policies are uncertain, and the ultimate effects will depend on how these policies are implemented and how the economy responds to them. As for tariffs, the situation remains fluid, and the potential impacts will depend on Trump's future actions in this area.