What you need to pay attention to as the Trump 2.0 era begins


U.S. President Donald Trump holds a rally ahead of the 60th Presidential Inauguration at Capital One Arena on Sunday, January 19, 2025 in Washington, DC, the United States.

Al Drago | Bloomberg | Getty Images

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Trump says he will declare national emergency
U.S. President Donald Trump said on Monday he would
Declaring a national energy emergency – part of a sweeping agenda to increase fossil fuel production – end what he calls the “Green New Deal” and withdraw the United States from international commitments to combat climate change.

Optimistic about Trump’s term
After Trump returned to the White House, he caused panic in some countries with his tariff threats and unpredictable foreign policy. But people in many other countries Bullish on Trump 2.0the European Council on Foreign Relations think tank said at the time of publication global opinion poll Wednesday.

$Melania and $Trump
First Lady Melania Trump Launched its own meme coinSunday night, named “Melania.” The coin is currently trading at $4.20, down from highs of around $13. On Friday, Trump also Announcing the Meme Coin Known as “Official Trump.” When coin prices were at their highest, the Trump family’s Net worth surges by billions of dollarsbased on holdings of its just-launched digital asset.

Biden’s pardon
Former US President Joe Biden on Monday Issue preemptive pardons For several family members, the reason was concerns that they would be the target of “baseless and politically motivated investigations.” Biden also pardoned Congressman Anthony Fauci and General Mark Milley who investigated the matter. Capitol riots on January 6 and others he said Threats become ‘unwarranted’ targets for political purposes.

Euro and pound strengthen against dollar
U.S. markets were closed Monday for Martin Luther King Jr. Day. Pan-European Stoxx 600 Index Slightly up 0.05%. this EUR and GBP Strengthened against the US dollar, It is reported Trump will not impose tariffs on U.S. trading partners on his first day in office.

(PRO) The second time is an echo of the first?
Trump’s second term could be have the same impact on certain asset classes Some on Wall Street say it’s the same story as in the first round. To find out, CNBC Pro looked at the performance of multiple assets during the first 100 days of Trump’s last presidential term and asked analysts how they performed.

bottom line

donald trump is Officially became the 47th President of the United States – and plan to act immediately. trump has promised Signed more than 50 executive orders He had just taken office, according to a person involved in the transition. Here are the two main questions investors will be paying attention to.

tariff

“To me, the most beautiful word in the dictionary is ‘tariffs,'” Trump told the Economic Club of Chicago in October. On the campaign trail, Trump vowed to impose 20% tariff is generally imposed All products imported into the United States, 25% off items from Canada and Mexico and more than 60% are Chinese products.

The government imposes tariffs ostensibly to protect domestic industry. The fee paid by a company that imports goods is essentially a taxpushing up costs. This prompted them to turn to local suppliers.

Because supply chains are so integrated globally and most manufacturing is done outside the United States, companies may find it difficult to move production locally. Then, higher costs may be passed on to consumers in the form of price increases.

In other words, tariffs could lead to more inflation.

deportation

Trump at a pre-inauguration event titled “Make America Great Again Victory Rally” promised telling his supporters that “the invasion of our country will stop.” Like tariffs, stricter immigration policies (or outright deportations) are often done to protect the domestic economy (among other reasons).

The theory is that the fewer people competing for an open position, the easier it is to obtain employment.

But many sectors of the U.S. economy, such as construction and agriculture, are at a standstill. Made up of undocumented immigrantstaking jobs that residents don’t like. Even documented immigration is critical to high-skilled industries like tech—as Elon Musk’s feud with Trump supporters over immigration proves. H-1B visa.

If a reliable source of labor disappears overnight, companies will have to raise wages to attract talent, potentially raising the prospect of another horrific wage-price spiral.

Other policies

Trump also promised many other economic measures, such as corporate tax cuts, legalizing cryptocurrencies and eliminating green energy subsidies.

However, tariffs may have the biggest impact on the economy financial institution worldwide.

—CNBC’s Sam Meredith, Ryan Ermey, Annie Nova, Rebecca Picciotto, Evelyn Cheng and Lim Hui Jie contributed to this report.



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