Trump’s Economic Vision: Crypto Surges, Tariffs Loom

Inaugural Promises and Policies

In his inaugural address on Monday, President Trump proclaimed, “The Golden Age of America begins right now.” He expressed confidence that the United States would soon become “the envy of every nation,” insisting that the country would “no longer be taken advantage of.”

Throughout his speech, he revisited familiar themes from his campaign, such as the call to “drill, baby, drill,” the ambition to transform the U.S. back into a “manufacturing nation,” and plans to create an External Revenue Service for tariff collections. Notably, on his first day in office, Trump issued several executive orders.

Market Reactions and Cryptocurrency Surge

Responses to Trump’s inaugural speech were somewhat muted due to the Martin Luther King Jr. Day market holiday. However, the cryptocurrency market experienced notable activity, with Bitcoin (BTC-USD) reaching a new peak of $109,340. This rise followed Trump’s announcement of a new memecoin over the holiday weekend.

Despite initial enthusiasm, Bitcoin’s value declined when Trump failed to introduce specific pro-crypto measures on his first day. Nonetheless, stock futures showed positive movement in overnight trading, supported by the best weekly performance on Wall Street since the post-election rally in November 2024.

Currency and Forex Market Impacts

The inauguration spotlighted the currency and forex markets. The Mexican peso fell against the U.S. dollar, while the Canadian dollar dropped to a five-year low amid reports of potential 25% tariffs on goods from Mexico and Canada, which could be enforced as soon as February 1st. The euro also weakened following Trump’s renewed tariff threats against the EU unless they agree to “buy our oil and gas.” However, the possibility of universal tariffs was dismissed, with claims that the U.S. is “not ready for that yet.”

Sector Implications and Executive Actions

Trump’s executive orders have already begun affecting various sectors, particularly technology and automotive industries. The U.S. has withdrawn from the Paris Climate Accord again, halting leasing and permitting for wind energy projects.

Furthermore, mandates for electric vehicles have been rescinded, and illegal immigration has been declared a national emergency. In a significant technology-related move, Trump postponed the enforcement of a ban on the popular app TikTok by 75 days and suggested that the U.S. government should acquire a 50% stake in the company.