Just one week into his new term, P resident Donald Trump is setting the stage for what he calls a “Golden Age” for America—a vision packed with aggressive trade policies, sweeping deportation plans, and an “energy emergency” declaration. This guy’s plan is to make America self-reliant by producing more goods domestically, pumping out more oil and gas, and putting US workers at the forefront of economic growth. “We will be the envy of every nation,” he declared during his inaugural address on January 20. “And we will not allow ourselves to be taken advantage of any longer.” Trump’s tariffs are meant to reshape trade Trump has announced a 10% levy on Chinese goods and a 25% tariff on imports from Canada and Mexico starting February 1. This is to force companies to rethink supply chains and bring manufacturing jobs back to the US. Trump has compared his approach to that of William McKinley, a Republican president from the late 1800s, during a time when tariffs fueled rapid industrial growth in America. “President McKinley made our country very rich through tariffs and through talent,” Trump said. He even announced plans to rename Denali, North America’s highest mountain, in honor of McKinley. Federal agencies have been tasked with reviewing America’s trade relationships to align with Trump’s agenda. The president’s policies build on the last administration’s push to strengthen American industries, including renewable energy, semiconductor manufacturing, and infrastructure. However, Trump’s focus is more direct: limit foreign imports, maximize domestic production, and leverage America’s economic might to get better deals. The economy is in a positon of strength The US economy is in solid shape, outperforming other major economies. Growth hit an annualized 2.7% in the last quarter of 2024, following two strong quarters of 3% growth. Consumer spending remains strong, driven by a strong labor market, low unemployment, and rising wages, according to data released on January 23. Personal wealth has also hit record levels, with home values and the stock market surging throughout 2024. This has protected America from the economic stagnation seen in Europe, where Germany and France are struggling with sluggish growth along with outright contractions. But there’s concern about how sustainable Trump’s inward-focused strategy will be. Economists are watching inflation closely, with some fearing that cutting taxes and immigration in an already hot economy could lead to price spikes. Bond markets have reacted, with long-term yields climbing—a signal that higher borrowing costs could be on the horizon. Meanwhile, Trump’s push for energy independence has rattled Wall Street. His “drill, baby, drill” mantra is aimed at cutting energy costs by increasing oil and gas production, but investors are worried that an oversupply could hurt profits.
