US President Donald Trump at a rally at Capital One Arena ahead of the 60th presidential inauguration in Washington, DC, USA, on Sunday, January 19, 2025.
Al Drago | Bloomberg | Getty Images
This report comes from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open tells investors everything they need to know, no matter where they are. Do you like what you see? You can register here.
What you need to know today
Trump says he will declare a national emergency
US President Donald Trump said on Monday he would declare a national energy emergency – part of a broader agenda aimed at increasing fossil fuel production – end what he called the “Green New Deal” and withdraw the US from international obligations withdraw to combat climate change.
Optimistic for Trump's term in office
Trump's return to the White House has caused consternation in some countries because of his threat of tariffs and his unpredictable foreign policy. But people in many other countries are optimistic about Trump 2.0, the European Council on Foreign Relations think tank said as it released a global survey on Wednesday.
$MELANIA and $TRUMP
First Lady Melania Trump launched her own meme coin called “Melania” on Sunday evening. The token is currently trading at $4.20, down from its peak of around $13. On Friday, Trump also announced a meme coin called “Official Trump.” At the peak of token prices, the Trump family's net worth increased by billions of dollars based on holdings of their just-launched digital assets.
Biden's pardons
Former US President Joe Biden preemptively pardoned several family members on Monday, citing concerns that they could become targets of “unfounded and politically motivated investigations.” Biden also pardoned Anthony Fauci, Gen. Mark Milley, members of Congress investigating the Jan. 6 Capitol insurrection and others he said were at risk of being “baselessly” targeted for political purposes.
Euro and pound sterling strengthen against the dollar
U.S. markets were closed Monday for Martin Luther King Jr. Day. The pan-European Stoxx 600 index rose 0.05%. The euro And British pound strengthened against the US dollar as it was reported that Trump would not impose tariffs on US trading partners on his first day in office.
[PRO] The second time an echo of the first?
According to some on Wall Street, Trump's second term could have the same impact on certain asset classes as the first term. To find out, CNBC Pro examined the performance of several assets during the first 100 days of Trump's final presidency and asked analysts how those assets will perform.
The end result
Donald Trump is officially the 47th President of the USA – and wants to get started immediately. Trump has promised to sign more than 50 executive orders immediately after his inauguration, according to a person in his transition operation. Here are the two main themes investors will be keeping an eye on.
Tariffs
“To me, the nicest word in the dictionary is 'tariff,'” Trump told the Chicago Economic Club in October. During the campaign, Trump promised to impose a universal tariff of 20% on all imports into the US, 25% on goods from Canada and Mexico and a tariff of over 60% on Chinese products.
Governments impose tariffs to supposedly protect domestic industries. Companies that import goods essentially pay a tax, driving up costs. This leads them to look for local suppliers instead.
Because global supply chains are highly integrated and much manufacturing occurs outside the U.S., it can be difficult for companies to move production to local shores. The higher costs are then likely to be passed on to the consumer in the form of increased prices.
In other words, tariffs could lead to more inflation.
Deportations
At a pre-inauguration event called the “Make America Great Again Victory Rally,” Trump promised his supporters that “the invasion of our country will have come to a halt.” Like tariffs, stricter immigration policies – or even deportations – are typically enacted to protect the domestic economy (among other reasons).
The theory is that it will be easier to find employment if there are fewer people competing for each open job.
But many parts of the U.S. economy, such as construction and agriculture, employ undocumented immigrants who take jobs that are undesirable to residents. Even registered immigrants are crucial to higher-skilled sectors like technology — as Elon Musk's fight with Trump supporters over H-1B visas proves.
If reliable sources of labor disappear overnight, companies will have to increase wages to attract talent, potentially leading to the dreaded wage-price spiral once again.
Other guidelines
Trump has promised many other economic measures, such as tax cuts for corporations, legitimizing cryptocurrencies and eliminating green energy subsidies.
However, tariffs could have the biggest impact on the economy and financial institutions 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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