Watch out for this Trump 2.0 politics

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47th President of the United States
President Donald J. Trump was sworn in at the White House on Monday and began signing a flurry of executive orders. He issued “full forgiveness” people charged with the attack on the US Capitol on January 6, 2021; suspended for at least 75 days the implementation of the law that prohibits TikTok in the United States; and created the Elon Musk-led Department of Government Efficiency, or DOGE.

A state of emergency has been declared in the energy industry
Trump on Monday declared a state of emergency in the energy sector – part of a broader program aimed at increasing fossil fuel production – and ordered the US to withdraw from the Paris climate accord. He also canceled various climate goals of the Biden administration, such as achieving zero emissions by 2050.

Trump targets tariffs
Trump told reporters on Monday that he was considering the imposition fees of 25% from Mexico and Canadaand they are scheduled to take effect on February 1. He also published a provide a memorandum assignment to federal agencies carefully study the trade policy with other countriesespecially in China, Canada and Mexico, but the memorandum did not introduce new tariffs.

Pardoning Biden
Former US President Joe Biden on Monday granted preliminary pardons for several family members, citing fears that they would be the target of “baseless and politically motivated investigations.” Biden also pardoned Anthony Fauci, General Mark Milley, members of Congress who were investigating Capitol riot on January 6 and others who, he said, were under the threat of being an “unwarranted” target for political purposes.

Asian markets rise after inauguration
US markets were closed on Monday for Martin Luther King Day. Mainly stock futures edged bottom tuesday after Trump said he was considering tariffs on Mexico and Canada. Asia-Pacific markets advanced tuesday. Hong Kong Hang Seng Index added almost 1%, and Korean Kospi index fell by about 0.1% as the country’s wholesale inflation rose by 1.7% year-on-year in December.

(PRO) Second time an echo of the first?
Trump’s second term may be better the same effect on certain asset classes as it was in the first round, according to some on Wall Street. To find out, CNBC Pro analyzed the performance of several assets over the first 100 days of Trump’s final presidency and asked analysts how those assets would perform.

Since then, Donald Trump has gone to work officially became the 47th president of the United Statessigning numerous executive orders just after his inauguration. Here are the two main issues that investors will be watching.

Tariffs

“I think the most beautiful word in the dictionary is ‘tariff,'” Trump told the Economic Club of Chicago in October. On Monday, Trump said he was considering the imposition 25% customs duty on goods from Canada and Mexico until February 1. During the election campaign, Trump promised to charge with a universal tariff up to 20% on all US imports and more 60% on Chinese products.

Governments impose tariffs ostensibly to protect domestic industry. Companies that import goods pay what they have essentially a taxincreasing costs. This prompts them to look for local suppliers instead.

Because supply chains are so integrated around the world and so much manufacturing is done outside of the US, it can be difficult for companies to move production to local shores. Therefore, higher costs are more likely to be passed on to the consumer in the form of price increases.

In other words, tariffs can lead to higher inflation.

Deportations

At a pre-inauguration event called “Making America Great Again,” Trump laid down to his supporters that “the invasion of our country will be stopped.” Like tariffs, tougher immigration policies — or outright deportations — are usually put in place to protect the domestic economy (among other reasons).

The theory is that with fewer people competing for each job opening, it will be easier to get a job.

But many parts of the US economy, such as construction and agriculture, are staffed by undocumented immigrantswho get jobs that residents do not want. Even certified immigrants are critical to high-skilled sectors like tech — as evidenced by Elon Musk’s clash with Trump supporters over H-1B visas.

If reliable sources of labor disappear overnight, companies will have to raise wages to attract talent, which could renew the prospect of a dreaded wage-price spiral.

Other politicians

Trump has promised many other economic measures, such as cutting corporate taxes, legalizing cryptocurrency, and eliminating subsidies for green energy.

However, tariffs may have the greatest impact on the economy financial institutions globally.

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