Donald Trump is set to kick off his first 100 days in office, sending shockwaves through Wall Street. With a focus on tax cuts, tariffs, and deregulation, market experts are bracing for a slew of executive orders that could significantly impact the economy.
As Trump takes the reins, tax cuts are top of mind for money managers. The Tax Cuts and Jobs Act, which is set to expire at the end of 2025, may see large portions extended or modified. Corporate tax rates could be lowered to 15% for domestically manufactured products, benefiting financials, industrials, and utilities.
However, experts warn that less tax revenue means fewer government funds, posing a challenge for Trump’s policies. “Especially early on, he’s gonna have a lot of support for basically whatever he wants to do outside of tax cuts,” says George Cipolloni, portfolio manager at Penn Mutual Asset Management.
Tariffs are another key area of focus, with investors eagerly awaiting details on Trump’s protectionist policies. A blanket tariff of 10% on all imports could be inflationary, but targeted tariffs on specific countries may have a more muted impact.
Deregulation is also expected to boost multiple parts of the economy, particularly for small-cap companies. Andrew Ferguson’s appointment as FTC chair signals a new era for Big Tech, with CEOs like Apple and Amazon expressing excitement about Trump’s presidency.
Some market experts are even speculating about an unconventional solution: DOGE. With the national debt hovering around $36 trillion, some believe that this memecoin could balance the budget by offsetting excessive government spending.
While DOGE is uncharted territory, it has the potential to reign in runaway deficits and rein in inflation. “You could cut Social Security without cutting benefits if you can identify wasteful agencies or services,” says Bryan Ragan, portfolio manager at Osterweis Capital Management.
Source: https://www.businessinsider.com/trumps-first-100-days-taxes-tariffs-and-doge-wall-street-2025-1