Trump’s Economic Engine Is Roaring. Here’s What That Means for Investors

If you’ve been watching markets and wondering why everything from semiconductors to steel is suddenly back in the spotlight, it’s not just hype. It’s policy.

Treasury Secretary Scott Bessent just laid out the core of the Trump administration’s 2025 economic game plan in The Wall Street Journal, and it boils down to three main levers: tariffs, tax cuts, and deregulation. The White House is framing it as a holistic strategy—not a random set of policy moves—and whether you love it or hate it, it’s already moving markets.

So let’s break it down in plain English, and more importantly: what should you, the retail investor, be watching?

1. Tariffs Are Back — And They’re Bigger Than Ever

Trump's return has brought with it a major rethinking of global trade. Tariffs are front and center—again.

• China faces a massive 145% tariff on goods.

• De minimis exemption closed — meaning small imports under $800 are now taxable.

• Semiconductor tariffs being considered, which could shake up AI and tech supply chains even further.

Why it matters to you:
Tariffs aren't just political chess pieces. They directly affect the bottom line of U.S. companies that rely on international inputs — think Apple, Nvidia, Tesla. Apple, for example, warned it will take a $900 million hit from these new policies.

For investors, tariffs could mean:

• Higher costs for tech manufacturers

• Shifting supply chains (read: volatility)

• A potential tailwind for domestic industrials and reshoring plays

This could be a setup for a U.S. manufacturing boom — or a short-term earnings drag on multinational giants. Smart portfolios will know where to lean.

2. Tax Cuts Focused on Main Street (But Wall Street Isn’t Left Out)

Trump’s tax vision includes:

• Making the 2017 tax cuts permanent

• No tax on tips, Social Security, or overtime pay

• New deductions for U.S.-made vehicles

• 100% expensing for equipment and factory construction

Bessent argues that these changes boost both the everyday worker and businesses reinvesting in America.

For investors:
Lower taxes = higher earnings = potentially higher stock prices. But there’s more nuance. If passed, these measures could:

• Strengthen consumer-facing stocks (more disposable income)

• Benefit capital-intensive businesses (factories, logistics, automation)

• Drive growth in auto, industrials, and energy

There’s also talk of accelerated depreciation for businesses, which could spur short-term CapEx spikes — a green flag for sectors like manufacturing, robotics, and materials.

3. Deregulation: Letting the Economy "Build Again"

From lifting restrictions on AI data centers to opening 1.5 million acres in Alaska for energy, this administration’s deregulation push is aggressive. The goal is simple: unshackle businesses and remove “Biden-era red tape.”

This includes:

• Streamlining compliance for small banks

• Expanding domestic energy production

• Speeding up infrastructure and tech development

Investment impact?
This is fuel for:

• Energy stocks (especially oil & gas, LNG)

• Regional banks (less compliance overhead)

• AI infrastructure plays (data centers, chipmakers, cloud computing)

Think less government, more margin. If these deregulatory policies take hold, investors could see significant upside in “build America” sectors.

Connecting the Dots: This Isn’t Just Politics, It’s Portfolio Strategy

Whether you support the policy or not, one thing is clear: these aren’t isolated changes. The Trump team is trying to build an interlocking engine of growth, where tariffs support reshoring, tax cuts incentivize reinvestment, and deregulation accelerates expansion.

For retail investors, the question isn’t political — it’s strategic:

• Are you overweight in sectors exposed to tariff volatility?

• Are you capitalizing on reshoring and domestic industrial growth?

• Are your strategies agile enough to respond to policy-driven momentum?

How Surmount Helps You Navigate This

At Surmount, we believe in building automated strategies that adjust as the macro environment changes. You shouldn't have to decode every policy speech or Fed whisper just to stay in the game.

Our strategies are built to reflect shifting sector leadership, policy risk, and new opportunities — like those created by this very economic blueprint.

If you’re looking to get ahead of the next policy-driven shift — not just react to it — it’s time to explore how automated investing can make your portfolio smarter.

The Bottom Line

Trump’s 2025 economic plan isn’t just about reviving old playbooks — it’s about shifting the center of gravity in global finance and manufacturing back toward the U.S.

Investors who understand the connections between tariffs, tax policy, and deregulation will be better positioned to capitalize — not just survive — in this next cycle.

And if you're not already building strategies that can pivot fast, you're not just missing the story — you're missing the upside.

Disclaimer: The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.