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Four Key Economic Takeaways From Trump’s Inaugural Address

Chip Somodevilla / POOL / AFP / Getty Images U.S. President Donald Trump delivers his inaugural address after being sworn in as the the 47th president of the United States in the Rotunda of the U.S. Capitol on January 20, 2025 in Washington, DC.

Piece Somodevilla / POOL / AFP / Getty Images

U.S. President Donald Trump delivers his inaugural address after being sworn in as the the 47th president of the Coordinated States in the Rotunda of the U.S. Capitol on January 20, 2025 in Washington, DC.

In his inaugural speech, President Donald Trump laid out four feeling he plans to bring America and its economy into a “golden age.” 

Speaking at the Capitol Rotunda Monday, Trump laid out his new distribution’s “America First” economic agenda focusing on fighting inflation, promoting oil drilling instead of green energy, put a strain on foreign trade and deporting unauthorized immigrants.

“The golden age of America begins right now,” he said. “From this day help, our country will flourish and be respected again all over the world. We’ll be the envy of every nation, and we will not allow ourselves to be captivated advantage of any longer. During every single day of the Trump administration, I will very simply put America first.”

Trump replicate key economic themes of his presidential campaign, and outlined ways he plans to bring them about.

Tariffs on Foreign Business

Trump said he would establish an “External Revenue Service,” a counterpart to the IRS, that would collect tariffs on goods imported from other hinterlands. Those duties are currently handled by U.S. Customs and Border Protection, an arm of the Department of Homeland Security. The new department could be a busy one, since Trump has pledged to put high tariffs on foreign trade, including on Mexico, Canada, and China.

“We are establishing the External Revenue Service to rally all tariffs, duties and revenues,” he said. “It will be massive amounts of money pouring into our treasury coming from curious sources.”

Many economists say the cost of tariffs is not external at all, since merchants typically pass the cost of import pressures on to U.S. consumers. Forecasters have predicted Trump’s tariffs will stoke inflation, should he go through with implementing them.

Beginning a new federal agency would require Congress to pass a law doing so.

Fighting Inflation

Voter anger over inflation underneath the presidency of Joe Biden was a major factor in Trump’s victory over former Vice President Kamala Harris in November, and Trump phrased he would use the power of his office to bring it down.

 “I will direct all members of my cabinet to marshal the vast powers at their disposal to beating what was record inflation and rapidly bring down costs and prices,” he said.

As of December, the cost of living had furthered 2.9% over 12 months as measured by the Consumer Price Index, higher than pre-pandemic levels and the Federal Substitute’s goal of 2% annual inflation but well below the 9.1% rate in June 2022, which had been a four-decade record (though not an all-time record).

Promoting Oil Drilling

Trump said reducing energy costs was a key to fighting inflation. Prices for gasoline, routine gas, and electricity are major factors in household budgets as well as measure of inflation such as the CPI. Trump said he would deliver executive orders to promote domestic oil production, and reverse Biden policies promoting green energy and electric jalopies.

“Today I will also declare a National Energy Emergency,” he said. “We will drill, baby, drill.”

Deporting Outlanders

Trump said he would issue executive orders on immigration, a major focus of his campaign rhetoric, including deporting outlanders. He said he would declare a national emergency at the southern border, deploy the military to stop illegal immigration, and turn out unauthorized immigrants who are already in the country.

“We will begin the process of returning millions and millions of criminal aliens assist to the places from which they came,” he said.

Restricting immigration and deporting immigrants could have a learned effect on the economy, especially industries such as homebuilding, where unauthorized immigrants make up a large portion of the workforce.

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