Trump's First Year in Office: Policies and Impacts


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. President Donald Trump completed his first year 
focusing on aggressive deregulation and domestic energy expansion to stimulate 
industrial growth across the economy.

   The Trump administration prioritized the elimination of federal oversight to 
lower operational costs for domestic energy producers and traditional 
manufacturing sectors within the United States.

    

   Market-Friendly Outcomes and Policy Drivers

Domestic crude oil production reached record highs as the administration 
streamlined federal permitting processes and expanded leasing opportunities on 
protected public lands and offshore sites.
 The Department of Energy accelerated approvals for liquefied natural gas 
export terminals to strengthen global market share and provide a counterbalance 
to overseas energy competitors.
 Corporate investment in the traditional automotive sector increased following 
the formal rollback of stringent fuel economy standards and various tailpipe 
emission mandates established by previous administrations.
 The industrial sector benefited from significant reductions in compliance 
costs after the executive branch eliminated two existing federal regulations 
for every new rule introduced.    

   Countervailing Market Effects and Policy Risks

The implementation of tariffs is slowing economic growth both domestically and 
internationally, while at the same time contributing to inflation. It has also 
led to retaliatory tariffs on imports of U.S. goods abroad.
 A proposed 10-25% tariff on European allies opposed to the U.S. purchase of 
Greenland -- and taking the Arctic island by force if resistance remains -- is 
threatening to fracture the decades-strong NATO alliance.
 The Justice Department's criminal investigation into Federal Reserve Chair 
Jerome Powell has fueled concerns regarding central bank independence.  Public 
threats to bypass the Fed's interest-rate-setting authority have also boosted 
long-term yields on U.S. Treasury bonds, making borrowings even costlier.
 The freezing of billions of dollars in federal research grants to elite 
universities like Harvard has created long-term risks for American scientific 
innovation and the high-tech talent pipeline.
 The capture of Venezuelan president Nicolas Maduro and oversight of the OPEC 
member country's administration by the White House have disrupted heavy-crude 
supply chains, although the U.S. has started marketing some of the oil from 
there.
 Repeated U.S. threats to hit Iran "very hard" if it continues its domestic 
crackdown against mass civilian protests have added to geopolitical risk, 
particularly in oil, forcing global shippers to reroute from the Persian Gulf. 
U.S. bombers already struck Iran in June, targeting suspected nuclear sites.
 The administration's America First immigration crackdown and aggressive 
deportation tactics could destabilize the labor market, economists say, 
potentially triggering a significant long-term decline in national consumer 
spending and overall economic productivity.
 


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