Trump's policy proposals can be summarized in seven key terms: domestic tax cuts, external tariffs, deregulation, deportation of illegal immigrants, encouragement of fossil fuels, emphasis on technology, and diplomatic isolationism. During his campaign, Trump stated that he would fully advance the "America First" agenda, with one significant measure being the increase in external tariffs, some of which can be implemented through executive action without congressional approval.If the U.S. raises tariffs, it will have two main impacts on the affected economies: first, it will directly affect exports, and second, it will influence industrial layout. The extent to which the exports of the taxed economies are impacted by tariffs depends on their sensitivity to U.S. tariffs and the proportion of their exports to the U.S. in their total exports. Additionally, imposing tariffs may prompt foreign companies to consider relocating production bases, affecting fixed asset investment in the taxed economies. The impact of these changes on consumption also depends on the level of consumer propensity.From a macro policy perspective, China's fiscal policy has considerable room for maneuver, and its monetary policy still allows for easing. Given the increasingly complex external environment, there is a growing necessity for stronger policy measures to alleviate local government debt burdens, which will help support consumption, and fiscal policies should more directly benefit people's livelihoods.

（Source: uSMART HK）

1. Financial Economy

Trump's tax cuts and deregulation policies are seen as significant benefits for the financial sector. The projected reduction in corporate tax rates will directly enhance corporate profitability, especially in the banking and financial services industries. Furthermore, the Federal Reserve may maintain high interest rates to address inflation, which will further strengthen the dollar and make dollar-denominated assets more attractive.

2. Energy

The Trump administration is expected to continue supporting the extraction of fossil fuels by relaxing environmental regulations to maximize oil and gas production. This policy will allow the U.S. to maintain its status as the world's largest oil producer. Although global oil prices may be affected by factors like sanctions on Iran, the overall increase in supply will help stabilize WTI crude oil futures.

3. Manufacturing

Trump's trade policies will significantly impact the manufacturing sector, especially industries reliant on exports. Raising tariffs may enhance the competitiveness of domestic manufacturing and encourage foreign companies to consider relocating their production bases to the U.S. Sectors such as semiconductors and automotive may experience volatility due to tariff policies, while self-sufficient areas like electronics and defense may see growth opportunities.

4. Defense

Trump's commitment to increasing defense spending will directly benefit the defense industry. Increased investment in military enterprises is expected to drive up related stock prices. Additionally, Trump's demands for European allies to boost their defense budgets may also promote growth in global defense firms.

5. Technology

The technology sector may benefit from Trump's policies. Despite facing trade tensions, the domestic market's protection could provide a better environment for local tech companies. Furthermore, Trump’s potentially more lenient approach to cryptocurrency regulation could stimulate investment in digital assets.

6. Infrastructure

Trump's infrastructure investment plans are expected to stimulate growth in related industries. Government investments in transportation, energy, and communication infrastructure will directly benefit construction, materials, and engineering companies, providing robust support for the entire infrastructure sector.

7. Healthcare

The healthcare sector may experience complex impacts from Trump's policies. His tax cuts and deregulation might positively affect medical equipment and pharmaceutical companies, but changes in healthcare policy could introduce uncertainties. Investors will need to closely monitor the progression of relevant policies.

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（Source: uSMART HK）