Trump avoids tariffs, crypto just yet as first day focus on energy, immigration

Donald Trump’s return to the White House for a second term on Monday kicked off a busy day of executive orders, namely targeting the energy sector and immigration.

For all his talk beforehand, though, concrete announcements around cryptocurrencies and sweeping trade tariffs were absent.

Diversity, gender, electric vehicle targets and working-from-home policies appeared to take precedence in the meantime, as Trump 2.0 took little time to bring about abrupt changes.

Energy emergency 

As expected, a national energy emergency was declared, paving the way for ramped-up domestic oil and gas production.

Under the sweeping plan, and in keeping with Trump’s previous “drill, baby, drill” motto, excess regulation was set to be stripped and climate-friendly policies rowed back on.

This would include the US’s exit from the Paris climate agreement and an end to offshore wind farm leasing, as a ban on applications for liquefied natural gas export projects was also overturned.

Border and immigration 

Another national emergency, this time on the US-Mexico border, was also declared, in line with Trump’s wider plan to clamp down on immigration.

Respective orders beefing up security on the border, where military force was set to be deployed, and ending birthright citizenship were signed.

For the latter, Trump has already faced scrutiny given his lack of powers to change the constitution, with citizenship of US-born children guaranteed under the 14th Amendment.

Electric vehicles 

Under efforts to scrap Biden-era green policies, Trump also targeted the electric vehicle industry.

Most significant was the removal of a 2021 executive order calling for at least half of vehicle sales in 2030 to be made up of electrics.

Government targeted as home working scrapped

Trump’s pen was also put to paper on a government hiring freeze, a pause on new federal regulations and an order bringing all public workers immediately back into offices full-time.

Diversity and gender also in spotlight

Executive orders stretched to diversity initiatives in the federal government too, alongside declaring it would only recognise two genders.

Former Biden policies aimed at advancing racial equity for underserved communities and combating discrimination around gender or sexual orientation were again reversed under the move.

Crypto and tariffs: The elephant in the room

Two key areas left untouched, or at least almost, were the crypto market and promised tariffs on US neighbours Mexico and Canada.

Having pledged supportive measures for crypto, such as the creation of a strategic Bitcoin reserve, Trump fell short of firming up any such policies on his first day back.

Tariff talk was also limited to implications Canada and Mexico could be hit with the sweeping 25% taxes on February 1.

Trump’s “lack of immediate action on trade tariffs” marked the “big surprise,” AJ Bell analyst Russ Mould noted.