Trump's Day 1 Executive Orders Target EVs, Inflation, Immigration: What's Next?

As President-elect Donald Trump prepares to take office, investors are bracing for a flurry of executive actions that could have significant implications for the energy, inflation, and immigration sectors. Here's a look at what's in store and how these moves could impact the market.

Targeting Electric Vehicles (EVs)

Trump is expected to sign an executive order ending the "electric vehicle mandate," which has been encouraging automakers to produce more EVs. This move could have several consequences:

1. Reduced EV Adoption: By ending the mandate, Trump's administration would remove incentives for consumers to adopt EVs. This could lead to a decrease in EV sales, as consumers may opt for conventional internal combustion engine (ICE) vehicles instead, which are typically cheaper and have a more established infrastructure.
2. Slower EV Innovation: The mandate has been driving automakers to invest in EV technology and infrastructure. Without it, automakers may shift their focus away from EVs, slowing down innovation and development in this sector. This could also lead to a lack of new EV models and features, limiting consumer choices.
3. Impact on EV Prices: The mandate has been helping to lower EV prices by encouraging mass production and economies of scale. Without it, EV prices may increase, making them less affordable for consumers. This could lead to a decrease in EV adoption, further slowing down the market's growth.
4. Environmental Impact: By reducing EV adoption, Trump's move could lead to an increase in greenhouse gas emissions, as consumers opt for less fuel-efficient ICE vehicles. This could have negative environmental consequences, including contributing to climate change and air pollution.



Easing Regulations on Oil and Natural Gas Production

Trump is expected to sign executive orders to ease regulatory burdens on oil and natural gas production, including an order tied to Alaska. This action is part of his broader plan to cut red tape and regulations for the energy industry. These moves could have several effects on energy prices and inflation:

1. Increased Supply: By easing regulations and opening up more areas for exploration and drilling, Trump's actions could increase the supply of oil and natural gas in the United States. This increased supply could help to lower energy prices, as the law of supply and demand suggests that an increase in supply should lead to a decrease in price.
2. Increased Competition: Easing restrictions on exports could increase competition in global energy markets, potentially lowering prices for American consumers. This could also help to reduce the impact of price fluctuations in global markets on domestic energy prices.
3. Reduced Dependence on Foreign Oil: By increasing domestic energy production, Trump's actions could help to reduce the United States' dependence on foreign oil. This could help to insulate the country from price fluctuations in global energy markets and reduce the risk of supply disruptions.
4. Inflation: Lower energy prices could help to reduce inflation, as energy is a significant component of the consumer price index (CPI). However, the overall impact on inflation would depend on a variety of factors, including the magnitude of the price decrease, the responsiveness of demand to changes in price, and the behavior of other components of the CPI.

Ending Diversity, Equity, and Inclusion Programs

Trump is expected to sign an order ending diversity, equity, and inclusion (DEI) programs within the federal government. This move could have significant impacts on workplace dynamics and employee morale:

1. Reduced Employee Engagement and Morale: DEI initiatives often involve training and workshops that help employees understand and appreciate diversity, fostering a more cohesive and collaborative work environment. Eliminating these programs could lead to decreased employee engagement and lower morale, as employees may feel that their voices and perspectives are not valued or considered.
2. Increased Turnover: A less inclusive work environment may lead to higher turnover rates, as employees who feel marginalized or undervalued may seek employment elsewhere. This could result in a loss of institutional knowledge and increased recruitment and training costs for the federal government.
3. Decreased Innovation and Creativity: Diverse teams bring a variety of perspectives and ideas to the table, which can foster innovation and creativity. By eliminating DEI programs, the federal government may miss out on the benefits of diverse thinking and problem-solving, leading to less innovative solutions and stagnation.
4. Legal and Reputation Risks: Ending DEI programs could potentially expose the federal government to legal risks, as it may be seen as discriminatory or in violation of employment laws. Additionally, the move could harm the government's reputation, making it more difficult to attract and retain top talent in the future.
5. Potential Backlash and Resistance: Employees and advocacy groups may resist or push back against the elimination of DEI programs, leading to internal conflicts and potential disruptions in the workplace. This could result in decreased productivity and increased stress for employees.

In conclusion, Trump's Day 1 executive orders targeting EVs, inflation, and immigration could have significant impacts on the energy, inflation, and immigration sectors. Investors should closely monitor these developments and consider how they may affect their portfolios. As always, it's essential to stay informed and adapt to the ever-changing market landscape.