What to Expect from Donald Trump's Second Term as U.S. President

TMTPOST -- Earlier this month, a spokesperson for Donald Trump said that the incoming president is preparing more than 100 executive orders for his first day back in the White House. This flurry of action is expected to focus heavily on border security, deportations, and other key policy priorities, marking the start of what some are calling a "shock and awe" campaign.

Karoline Leavitt, his press secretary, further noted that Trump would use his executive power to deliver on many campaign promises, assuring the public that "the American people are going to be pleased with what they see from President Trump within mere minutes of his return to the Oval Office." Trump has made promises on a wide array of issues, including immigration, energy, education, LGBT and the Ukraine war during his presidential campaign, which are all due on Monday. The following is a quick look at his stance on global trade and immigration.    

Global trade and tariff

One key area of focus is trade policy. In the weeks following his reelection, Trump vowed to impose a 25% tariff on products imported from Mexico and Canada, two of the U.S.'s largest trading partners. This follows earlier promises of a 10% tariff across the board, with his November comments signaling a more aggressive approach.

Trump has repeatedly expressed his belief that tariffs are an effective negotiating tool. In his words, "The most beautiful word in the dictionary is tariff." His plan is to use tariffs as leverage, particularly to address issues like drug trafficking and illegal immigration.

Trump’s approach to global trade is rooted in a skepticism of global markets, viewing them as detrimental to American interests. He has proposed imposing tariffs ranging from 10% to 20% on foreign goods, and even hinting at steeper rates in some speeches. Additionally, he has vowed to reinstate an executive order from August 2020, mandating that the federal government purchase "essential" medications solely from U.S. companies. Trump has also committed to blocking Chinese buyers from acquiring "any vital infrastructure" within the United States.

On November 20, Trump said that on January 20, one of his first executive orders would involve signing the necessary documents to impose a 25% tariff on all products coming into the United States from Mexico and Canada. He explained that the tariff would remain in effect until issues related to drugs, particularly fentanyl, and illegal immigration were addressed.

He emphasized that both Mexico and Canada had the power to resolve this ongoing problem and demanded that they take action, warning that until they did, they would face significant consequences. 

Similarly, Trump said that China will face higher tariffs on its goods – by 10% above any existing tariffs – until it prevents the flow of illegal drugs into the United States. “I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail,” Trump posted on Truth Social. The president-elect claimed in the post that Chinese officials promised him the country would execute drug dealers caught funneling drugs into the United States but “never followed through.”

The proposed tariffs on imports from neighboring countries have the potential to disrupt the global economy and supply chains, driving up costs in the U.S. This could conflict with Trump's promise to reduce costs for everyday Americans, and the actual implementation of his policies will likely reveal whether his rhetoric aligns with reality.

Immigration reform

Trump’s immigration policies are expected to undergo drastic changes, with a focus on aggressive deportation efforts. Throughout his campaign, he repeatedly pledged to carry out "mass deportations" and has surrounded himself with hardcore anti-immigration advisors.

At one of his pre-election rallies last year, Trump declared that on his first day back in the White House, he would terminate all open borders policies of the Biden administration and initiate the largest deportation operation in American history.

The focus of these efforts will be on undocumented migrants, with estimates suggesting there are around 11 million individuals in this category in the U.S. Some have speculated that the military might be called upon to assist in rounding up undocumented migrants across the country. This would likely include long-term residents who have been waiting for a chance to change their immigration status.

Furthermore, many of these undocumented migrants have family members who are U.S. citizens by birth, complicating the situation and adding another layer to the expected policy shift.

Donald Trump's immigration policy for high-tech workers has been marked by a restrictive approach aimed at prioritizing American jobs while tightening eligibility for employment-based visas. During his first term, Trump implemented measures that increased scrutiny and limited access to H-1B visas, a popular pathway for high-tech workers to enter the U.S. The policy required companies to provide stronger evidence that hiring foreign workers would not displace American workers or depress wages.

Trump also sought to raise the minimum wage requirements for H-1B holders, effectively discouraging businesses from hiring entry-level foreign workers and focusing instead on highly skilled individuals. Additionally, his administration proposed changes to redefine the criteria for "specialty occupations," further narrowing the pool of eligible applicants.

Trump’s 2024 presidential campaign has outlined plans for mass deportations of undocumented workers, undoing Biden-era actions, and dismantling programs like Deferred Action for Childhood Arrivals (DACA) and Temporary Protected Status (TPS), which currently protect hundreds of thousands of workers.

For his 2024 campaign, Trump has pledged to continue these efforts, including revoking Biden-era policies that eased restrictions and restored certain pathways for high-tech workers. He has also emphasized increasing enforcement against visa fraud and holding companies accountable for circumventing labor protections.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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