Market Insights

On the 20th at noon Eastern Time, Trump was sworn in as the 47th President of the United States in the Rotunda of the Capitol in Washington, D.C., and delivered a 30-minute inaugural address. It is reported that Trump's inaugural speech is the longest in terms of word count since former President Hoover (1929). Trump opened his speech by saying, "The golden age of America begins now, and for Americans, January 20, 2025, will be Liberation Day. Our current government cannot handle even a simple domestic crisis and is constantly being drawn into a series of catastrophic events abroad." "My election is to completely reverse this terrible betrayal. From this moment on, the decline of America has ended," Trump stated, adding that he would sign a series of historic executive orders today. "Through these actions, we will begin the full restoration of America and initiate a revolution of common sense. It's all about common sense." Highlights of Trump's Inauguration Day Through a review, the key points of Trump's inauguration day can be summarized as follows: oil and gas extraction, Mars landing, ending wars, reclaiming the Panama Canal, revoking the "Electric Vehicle Mandate," establishing an external revenue service, and withdrawing from the Paris Agreement. Highlight 1: Oil Extraction and Revoking the Electric Vehicle Mandate Specifically, Trump said in his speech that he would declare a national energy emergency aimed at increasing U.S. oil and gas production and reducing costs for American consumers. Many actions are expected to be taken that day to support the U.S. oil, gas, and electricity industries and to block former President Biden's Green New Deal, with the energy emergency being just one of them. It is understood that Biden had vowed to wean the U.S. off fossil fuels when he entered the White House, but during his tenure, U.S. oil and gas production hit record highs due to sanctions on Russia after the Ukraine conflict, which caused oil and gas prices to soar, prompting oil companies to ramp up extraction efforts. Trump stated in his inaugural address: "The inflation crisis is caused by massive overspending and rising energy prices, which is why I will declare a national energy emergency today. We will drill, and drill big." Although he did not reveal the details of the energy emergency, Trump and his allies have indicated that they are prepared to use "emergency powers" to boost domestic energy production, including rapidly approving new oil, gas, and electricity projects, and directing the revocation of climate regulations enacted by the Biden administration. At the same time, speaking about inflation, Trump said he would instruct all cabinet members to use their significant powers to defeat record inflation and quickly reduce costs and prices. "We will 'drill, baby, drill.'" "Drill, baby, drill" was a Republican campaign slogan in 2008, expressing support for increased oil and gas drilling to provide additional energy. Trump has also used this slogan multiple times during his 2024 presidential campaign. Trump stated that the U.S. would use its oil reserves to fill the national reserve and boost exports, "We will produce cars in America again at a speed no one could have imagined a few years ago." He also mentioned that he would revoke the electric vehicle mandate. Highlight 2: Reforming the Trade System On trade, Trump said he would immediately begin reforming the trade system to protect American workers and families, "We will not tax our citizens to enrich other countries, but impose tariffs on foreign countries to enrich our citizens." At the same time, Trump stated that the U.S. would establish a new government agency called the "External Revenue Service" (ERS). This agency would be responsible for collecting tariffs, taxes, and all income from foreign countries. "For this, we are establishing the External Revenue Service to collect all tariffs, taxes, and duties. A large amount of money will come from abroad, pouring into our treasury, and the American Dream will soon return and flourish in ways never seen before, restoring the capacity and efficiency of our federal government," he said. In November 2024, Trump had stated that he would impose tariffs upon taking office, including a 25% tariff on all products imported from Canada and Mexico to the U.S. Trump also mentioned that he would rename Denali (the highest peak in North America) back to Mount McKinley. McKinley refers to the 25th U.S. President William McKinley, who advocated for a hard currency policy and high tariffs, promising that increased tariffs would bring prosperity back to the U.S. economy. Maurice Obstfeld, former Chief Economist of the International Monetary Fund and economic advisor to then-President Obama, stated that the new tariffs would be "particularly disruptive" to Mexico and Canada but also "harmful" to the U.S. Taking the automotive manufacturing industry as an example, the sector "relies on a supply chain spread across the three countries." Disrupting this supply chain would cause significant damage to the automotive market, potentially driving up prices, reducing product demand, harming company profits, and thereby dragging down investment levels. Hu Yi, an associate professor and doctoral supervisor at the Institute of American and Canadian Economic Studies at Wuhan University, stated that Trump's tariffs would have a massive impact on global trade and supply chains, significantly increasing the risks and costs of global trade. This impact would be across all industries, especially those highly dependent on overseas products, such as steel and aluminum, home appliances, electronic communication products, machinery, clothing, footwear, furniture, and toys. At the same time, U.S. Customs and Border Protection stated that the Trump administration has stopped the use of an app called CBP One. This app provided an orderly application process, allowing immigrants to legally enter the U.S. The Department of Homeland Security stated that existing appointments on the app have been canceled. Highlight 3: Reclaiming the Panama Canal "Soon, we will change the name of the Gulf of Mexico to the Gulf of America," Trump said about the Panama Canal, "We gave it to Panama, and now we are going to take it back. We have been treated very badly, and Panama has broken its promises to us." "We have been severely overcharged for U.S. ships, and we have not been treated fairly in any way," Trump had previously stated that the Panama Canal charges "excessive prices and tolls" for U.S. Navy and merchant ships. In response to Trump's remarks, the Panamanian government quickly responded. Panamanian Foreign Minister Martínez-Acha pointed out: "The sovereignty of the Panama Canal is unshakable. The canal was officially handed over to Panama in 1999, and there is broad international consensus on this." At the same time, Panama warned that this move could trigger regional instability and damage diplomatic relations between the U.S. and Panama. Panamanian President Mulino emphasized that the management and operation of the canal have been successfully controlled by the Panamanian government, and any attempt to intervene would be met with strong opposition. Meanwhile, the Panamanian people generally believe that the ownership of the canal is an important symbol of national independence and dignity. Currently, about 5% of global trade freight passes through this canal. Relying on the canal's advantages, Panama has become a regional trade, shipping, and financial hub. At the same time, the Colón Free Trade Zone, built near the Atlantic side of the canal, is the largest free trade zone in the Western Hemisphere; Tocumen International Airport in Panama is an important aviation hub connecting South America, Central America, and North America; major financial institutions from the Americas, Europe, and Asia have established branches in Panama, and the International Banking Center in Panama City is a major financial center in Latin America. Highlight 4: Ending Wars and Flying to Space Trump emphasized that he is committed to being a "peacemaker" who ends wars and promised not to engage in wars. After his speech, attendees on both sides of Trump (including Democrats) stood up and applauded. He also pointed out that the U.S. military will focus on defeating America's enemies. In addition, Trump stated that he would establish a society based on performance, not skin color. "From today, the official policy of the U.S. government is that there are only two genders: male and female." In fact, after Trump's election victory, many companies withdrew their "diversity, equity, and inclusion" policies. Trump concluded by saying: "Many people thought it was impossible for me to achieve such a historic political comeback, but as you can see today, I am here because the American people have spoken. In America, what we do best is achieve the impossible." In the field of space, Trump said: "We will pursue our space destiny, fly to the stars, send American astronauts to Mars, and plant the Stars and Stripes." The media captured Elon Musk smiling and giving a thumbs-up to Trump as he said this. Highlight 5: Repealing Nearly 80 Policies of the Biden Administration Newly inaugurated U.S. President Trump signed an executive order on the 20th, repealing nearly 80 policies of the Biden administration. Among them, the U.S. will withdraw from the Paris Agreement on climate change. In 2015, the United Nations Climate Change Conference reached the Paris Agreement, becoming an important achievement in global efforts to address climate change. In June 2017, then-U.S. President Trump announced that the U.S. would withdraw from the Paris Agreement. On November 4, 2020, the U.S. officially withdrew from the agreement. This move was widely criticized both domestically and internationally. On January 20, 2021, on his first day in office, President Biden signed an executive order announcing that the U.S. would rejoin the Paris Agreement. On February 19 of the same year, the U.S. officially rejoined the Paris Agreement. In response to Trump's announcement of plans to withdraw from the Paris Agreement, the spokesperson for the United Nations Secretary-General responded on January 20. The United Nations stated that the 2015 United Nations Climate Change Conference reached the Paris Agreement, which provides a meaningful and flexible framework for actions by many countries around the world. UN Secretary-General António Guterres had previously mentioned that the past decade was the hottest on record. Just look at Los Angeles to see the human, ecological, and economic disasters caused by climate change. Currently, collective efforts under the Paris Agreement have begun to show results, but to better address climate change, we need to go further and faster together. The spokesperson pointed out that the transformation envisioned by the Paris Agreement is already underway globally. The energy revolution triggered by the agreement provides unparalleled opportunities for countries and businesses to invest in renewable energy, driving employment and economic prosperity in the 21st century. In this critical decade, leaders must seize these opportunities and take climate action. The spokesperson also stated that the Secretary-General still believes that cities, states, and businesses within the U.S., as well as other countries, will continue to strive for low-carbon, resilient economic growth, creating high-quality jobs and markets for 21st-century prosperity. According to Sky News, outgoing U.S. President Biden issued a statement at the "last moment" of his tenure, "preemptively" pardoning his family. Earlier that day, Biden had announced the "preemptive" pardoning of former National Institute of Allergy and Infectious Diseases Director Anthony Fauci, former Chairman of the Joint Chiefs of Staff Mark Milley, and members of the House Select Committee on the January 6 Attack, among others, to prevent retaliation by the Trump administration after taking office.