Future
The Cheat Sheet on Trump’s First Week
It was a whirlwind. Here’s what business leaders need to know.
During his first week in office, President Trump issued a barrage of executive orders, signing sweeping directives on immigration, D.E.I., energy policy, trade, TikTok and more. The blizzard of activity — some of which is bound to be challenged in court — was overwhelming. Here’s our cheat sheet.
Tariffs and the economy
President Trump had long threatened to enact tariffs on Day 1 in office. Five days and dozens of executive orders later, there’s surprisingly little to show.
The good news: That’s delighted market watchers. The S&P 500 hit a fresh record this week, bolstered by a slew of solid corporate earnings, and a calm settled over the Treasuries market that suggests investors no longer see Trump tariffs as an immediate threat.
The less-good news: Though Trump himself has softened his tone on tariffs, analysts still think he’s likely to slap them at least on China (Goldman Sachs economists this week gave it 70 percent odds). Tariffs could lead to a wider trade war that saps global growth and potentially accelerates inflation.
What we’re watching: What will the Fed say next week about economic growth, and will inflation concerns force it to stand pat on interest rates? Will Trump ignore the warnings, anyway? After all, he does see tariffs as a revenue-driver, and he’s already put Jay Powell, the Fed chair, on notice about interest rates. “If I disagree, I will let it be known,” he told reporters this week. — Bernhard Warner
Diversity and inclusion
President Trump made it clear his attacks on diversity, equity and inclusion programs won’t be restricted to the federal government. On his second day in office, heinstructed agencies to identify targets for “civil compliance investigations” related to their D.E.I. practices.
