US President Donald Trump during a rally at Capital One Arena ahead of the 60th presidential inauguration in Washington, US, Sunday, January 19, 2025.
Al Drago | Bloomberg | Getty Images
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors the latest news wherever they are. Like what you see? You can subscribe Here.
What you need to know today
Trump announced that he would declare a national emergency
US President Donald Trump said on Monday that it was declare a nationwide energy emergency – part of a sweeping program to increase fossil fuel production – end what he called the “Green New Deal” and withdraw the US from international commitments to fight climate change.
Optimistic about Trump's term
Trump's return to the White House has caused consternation in some countries due to the threat of tariffs and unpredictable foreign policy. But people in many other countries do optimistic about Trump 2.0– said the team of advisors to the European Council on Foreign Relations in their publication global survey on Wednesday.
$MELANIA and $TRUMP
First Lady Melania Trump launched its own meme coincalled “Melania” on Sunday evening. The token is currently trading at $4.20, down from a high of around $13. On Friday, so did Trump announced a meme coin called “official Trump.” At the peak of token prices, the Trump family net worth increased by billions of dollarsbased on the resources of digital assets that have just been introduced to the market.
Biden's apology
On Monday, former US President Joe Biden issued a preventive pardon for several family members, citing fears that they would become targets of “unfounded and politically motivated investigations.” Biden also pardoned Anthony Fauci, Gen. Mark Milley, members of Congress who investigated the case January 6 Riots at the Capitol and others whom he said were below the threat of being a “baseless” target for political purposes.
The euro and the pound sterling are strengthening against the dollar
US stock markets were closed on Monday for Martin Luther King Jr. Day. Pan-European Stoxx600 Index increased by 0.05%. The euro AND British pound strengthened against the US dollar, as stated that Trump will not impose tariffs on US trading partners on the first day of his term.
(PRO) The second time is an echo of the first?
Trump may have a second term the same impact on some asset classes according to some on Wall Street, similar to what happened in the first round. To find out, CNBC Pro examined the performance of several assets over the first 100 days of Trump's last presidency and asked analysts how they will perform.
The most important thing
Donald Trump is officially the 47th president of the USA — and plans to keep his feet firmly on the ground. Trump promised sign over 50 executive orders Fresh from his inauguration, according to a person involved in his transition operation. Here are the two main issues investors will be paying attention to.
Tariffs
“For me, the most beautiful word in the dictionary is 'tara,'” Trump told the Chicago Economic Club in October. On the campaign trail, Trump promised to impose approx universal tariff 20%. for all imports into the USA, 25% on goods from Canada and Mexico and more than 60% on Chinese products.
Governments impose tariffs to supposedly protect domestic industries. Companies importing goods pay what is required basically a taxraising costs. This prompts them to look for local suppliers instead.
Because supply chains are so integrated around the world and much of the production takes place outside the United States, it can be difficult for companies to move production to local shores. Higher costs are therefore likely to be passed on to the consumer in the form of price increases.
In other words, tariffs could lead to more inflation.
Deportations
At a pre-inauguration event titled “Make America Great Again Victory Rally,” Trump he promised to his supporters that “the invasion of our country will come to an end.” Like tariffs, stricter immigration policies – or outright deportations – are usually implemented to protect the domestic economy (among other things).
The theory is that the fewer people competing for each available position, the easier it will be to find employment.
However, many parts of the US economy, such as construction and agriculture, do employed by illegal immigrantswho undertake work that is undesirable to residents. Even documented immigrants are crucial in higher-skilled sectors such as technology – as evidenced by Elon Musk's dispute with Trump supporters over H-1B visas.
If reliable sources of labor disappear overnight, companies will have to raise wages to attract talent, potentially raising the prospect of a dreaded wage-price spiral again.
Other rules
Trump has promised many other economic measures, such as corporate tax cuts, legitimizing cryptocurrency and phasing out green energy subsidies.
However, tariffs may have the greatest impact on the economy and financial institutions globally.
— CNBC's Sam Meredith, Ryan Ermey, Annie Nova, Rebecca Picciotto, Evelyn Cheng and Lim Hui Jie contributed to this report.