As the new Trump administration approaches, individual investors are left with many questions, primarily- what does this mean for my money? 

This guide doesn’t promise answers. Instead, it aims to provide a grounded look at the current landscape. We’ll explore potential legislative updates, future of tariffs, tax considerations, and more—all from a nonpartisan, educational perspective.

What Happened Shortly After The Election?

In the immediate wake of the 2024 election results, there was a clear and sharp response across market indexes, individual stocks, and alternative investments. There was also a Republican victory in both the house and senate.

Market Indexes, Stocks, and Cryptos

Broad Market Rally: The S&P 500 surged to an all-time high, closing at 6,001.35, as investors showed optimism regarding potential pro-business policies. This trend was echoed across major indices, with the Dow Jones Industrial Average rising to 44,293.13 and the Nasdaq climbing to 19,298.76. Financial stocks and smaller companies, expected to benefit from Trump’s proposed tax cuts and reduced regulations, led the gains, while large-cap tech stocks saw slight dips.1

GameStop Rallied: The original “meme stock,” GameStop (NYSE: GME), experienced a significant surge, climbing 22.30% in just five days.2

Tesla’s Stock Climb: Tesla shares rose to their highest level in over two years, fueled by bullish options betting on favorable regulatory changes under a potential Trump administration.3

Bitcoin: Bitcoin continued an absurd rally, reaching a new all-time-high near $90,000, driven by multiple tailwinds, including institutional interest and an increasingly favorable regulatory landscape.4

Ethereum: Ethereum’s price experienced a significant increase, surpassing $3,000. This rise was attributed to positive regulatory sentiment under the new administration and substantial inflows into newly launched spot Ether exchange-traded funds (ETFs).5

Dogecoin: The meme coin cryptocurrency, Dogecoin, skyrocketed in value and, based on market cap, managed to become the sixth-largest form of cryptocurrency. This dramatic increase was fueled by President-elect Donald Trump’s appointment of Elon Musk to lead the newly established Department of Government Efficiency (DOGE), sparking heightened investor interest and speculation.6

Republican Majorities In House and Senate

The final election calls arrived throughout November, solidifying a clear GOP advantage. With both chambers and the presidency aligned, Republicans are better positioned to advance their proposed policies. This decisive outcome means President Donald Trump will likely face fewer barriers to enacting his proposed legislation.7

The Future of Crypto and Decentralized Finance (DeFi) Under a Trump Administration

With Trump’s return to the White House, many investors are curious about how his administration might impact the world of crypto. Trump’s recent pivot from crypto skeptic to advocate has set the stage for potential shifts in digital asset regulation and policy.

Trump’s Evolving Crypto Stance

Shift from Skepticism to Support: Trump’s perspective on cryptocurrency has shifted since 2019 when he voiced concerns about its use in illegal activities. During his 2024 campaign, he embraced digital assets, positioning himself as pro-crypto and rallying support among crypto investors.8 

Bitcoin as an Accepted Payment: In a move to signal his alignment with the crypto community, Trump not only accepted Bitcoin donations for his campaign but also used it for personal transactions. This approach aligns him with the growing population of crypto-friendly voters who favor fewer restrictions on digital currency transactions.8

Trump’s Proposed Policies on Cryptocurrency

Establishing a National Bitcoin Reserve: At a 2024 crypto event in Nashville, Trump announced plans for a “national Bitcoin reserve” to retain any Bitcoin currently held by the government. This idea has raised questions about the impact on Bitcoin’s value and potential trends in governmental digital asset management.9

A Crypto Advisory Council: Trump also introduced plans for a “Bitcoin and Crypto Presidential Advisory Council” that would include pro-crypto voices in regulatory decisions. This council aims to foster a supportive environment for blockchain innovation, indicating a commitment to avoid restrictive measures that might limit industry growth.10

Opposing a US Digital Dollar (CBDC): Trump has expressed strong opposition to the Federal Reserve’s exploration of a central bank digital currency (CBDC), arguing that it could infringe upon personal financial freedom. By opposing a US digital dollar, private-sector control over digital currency may be maintained instead of centralizing it under government management.11

Pro Crypto Leadership: Trump has chosen Paul Atkins as the new Securities and Exchange Commission chair—Atkins has been known for his pro crypto stances in the past, and under his leadership the SEC is expected to adopt looser regulatory measures that could boost the U.S. crypto sector while raising concerns about investor protection.12

Potential Tax Code Changes: What to Watch For

With Trump’s re-election, potential changes to the U.S. tax code are another significant area of focus for investors. Key elements of the Tax Cuts and Jobs Act (TCJA) are set to expire in 2026.13 Potential adjustments could affect individual tax rates, corporate rates, estate, and capital gains taxes. 

The Future of the TCJA and Individual Tax Rate Changes

Lower Tax Brackets: The TCJA reduced individual income tax rates across most brackets, offering lower rates for many taxpayers. Extending these cuts could maintain these lower obligations for taxpayers, potentially freeing up more disposable income and appealing particularly to middle-income households.

Expanded Standard Deduction: Nearly doubling the standard deduction was one of the TCJA’s most impactful changes, simplifying tax filing for many Americans. If extended, this provision would benefit taxpayers who prefer not to itemize deductions, reducing taxable income and potentially lowering tax bills.

Corporate Tax Adjustments

21% Corporate Tax Rate: The TCJA lowered the corporate tax rate from 35% to 21%.14 Trump has expressed interest in extending or possibly further reducing this rate to 15% to stimulate business investment and economic growth. 

Pass-Through Income Deduction: The TCJA introduced a 20% deduction for pass-through income, which benefits many small businesses.15 If extended, this provision could provide ongoing tax relief for small business owners, helping them retain more earnings for reinvestment and growth.

Estate and Gift Tax Adjustments

High Exemption Levels: The TCJA doubled the estate tax exemption, allowing individuals to pass millions more to heirs tax-free.16 Extending this exemption would provide flexibility for estate planners and benefit families looking to transfer wealth across generations.

Gift Tax Changes: The gift tax exemption aligns with the estate tax rules, allowing substantial tax-free transfers during one’s lifetime. Maintaining or increasing these thresholds would appeal to high-net-worth individuals aiming to reduce tax burdens on transferred assets.

Concerns About the TCJA Implications on the Nation’s Debt

Lower taxes may encourage economic activity, leading to job creation and wage increases. By reducing the tax burden on individuals and businesses, Trump’s proposed tax policies aim to foster continued economic expansion.

However, critics warn that making TCJA cuts permanent or expanding them could increase the federal deficit and national debt. In fact, some estimates suggest that the extension of the TCJA could increase the nation’s debt by $7.75 trillion by 2035.17

Trade Policy and Tariff Implications

As part of his proposed economic plan, Donald Trump has pledged substantial tariffs on imported goods, aiming to bolster American industries and job growth. These tariffs, which could go as high as 20% on all imports to 60% on goods from China, are central to his strategy of encouraging domestic production and reducing trade reliance on foreign economies.18 

What Are Tariffs and Why Are They Used?

Tariffs are taxes levied on goods imported into a country. For example, if a $50,000 vehicle is subject to a 10% tariff, it would incur an additional $5,000 in taxes. Importers, typically American companies, pay these tariffs at the border, which are then transferred to the US Treasury.18 

Tariffs aim to raise the price of imported goods, making domestically produced alternatives more attractive. By doing so, tariffs can provide an incentive for companies to manufacture goods within the country, which, in theory, could boost job creation and investment in American industries. However, some economists caution that tariffs can also raise consumer costs and limit choice.

Potential Costs For American Individuals and Households

Potential Price Increases for Consumers: Studies suggest that tariffs often result in higher prices for consumers, as importers pass on the added costs. For instance, when Trump imposed tariffs on washing machines in 2018, prices rose by roughly 12%, leading to an estimated $1.5 billion increase in costs for US consumers.19 

Potential Household Cost Increases: Some analysts have projected that typical middle-income households could see annual expenses rise by up to $2,600 if Trump’s higher tariffs are implemented.20

Potential Effects on US Industries, Employment, and the Broader Economy

Potential Boost to Key Domestic Industries and National Security: By making foreign goods less competitive, tariffs can give domestic companies a stronger market position. Additionally, tariffs can provide protection for industries seen as critical to infrastructure and national defense. For example, the Biden administration used tariffs to block the importing of Chinese goods such as electric cars and semiconductors for cited security purposes.21 

Potential Challenges for Import-Dependent Sectors: Some industries rely on imported materials, and tariffs can raise production costs, affecting profitability. In 2018, some studies found that much of the steel tariffs costs were indeed passed on to American companies and consumers.22

Potentially Limited Job Growth: Some studies have found that the impact on new American jobs may also be limited. For example, after the 2018 steel tariffs, employment in the steel sector saw minimal growth, which shows that job benefits may not always align with expectations.23

Uncertain Impact on Trade Deficits: Although tariffs aim to cut trade deficits by discouraging imports, they don’t always succeed. For instance, even with tariffs imposed during President Trump’s first term, the overall U.S. trade deficit still grew. That said, the deficit with China specifically did decline. Economists suggest that broader forces—such as national spending and saving habits—ultimately play a larger role in determining trade deficits than tariffs do.24

Risk of Foreign Retaliation: Trade partners can respond to tariffs with tariffs of their own, targeting US exports. During previous rounds of Trump’s tariffs, Canada, China, the European Union, and other countries imposed retaliatory tariffs on American goods, impacting US industries reliant on export markets.25 Retaliation not only affects exports but can also lead to uncertainty in global markets, making it more challenging for US companies to plan for the future. 

Shifting Supply Chains: In response to tariffs, some companies have restructured supply chains, moving production to non-targeted countries. For example, Chinese solar panel manufacturers shifted some operations to Malaysia and Vietnam to avoid US tariffs.26 Although this change mitigates some impacts of tariffs, it also shows how businesses adapt to tariff policies, underscoring both the flexibility of supply chains and the difficulty of containing economic effects.

Deregulation, Energy, and Healthcare

Widespread Deregulation: The new administration is poised to relax a broad range of rules, focusing heavily on sectors such as cryptocurrency and fintech. Proponents argue that this could lower operational hurdles, accelerate market innovation, and attract investment capital. However, some observers warn that reducing guardrails might create gaps in consumer and environmental protections. Businesses could also face unpredictable regulatory swings, complicating their long-term planning strategies.27

Energy Policies: Trump’s second term signals a renewed emphasis on traditional energy sources, with expanded fossil fuel exploration on federal lands and a more rapid approval process for liquified natural gas (LNG) projects. Advocates believe this approach will reinforce energy independence, stimulate job growth, and stabilize fuel prices. Yet curtailing or scrapping offshore wind initiatives—alongside potential withdrawal from climate accords—may hamper renewable energy expansion and provoke international criticism.28

Healthcare: While full-scale repeal of the Affordable Care Act seems less likely than in the past, the administration has also signaled plans to loosen federal oversight, champion market-driven reforms, and promote transparent pricing for consumers. Proposals such as capping prescription drug costs and challenging major pharmaceutical companies appeal to populist sentiments but may clash with traditional GOP tenets on deregulation and minimal government intervention. Delegating more regulatory control to states might spur fresh ideas in service delivery yet increase disparities in coverage across regions. Intra-party disagreements could ultimately shape how (and how quickly) these reforms take hold.29

Get Help With Preparing Your Portfolio

As you’ve seen, a new administration could introduce various policy changes affecting taxes, tariffs, and emerging areas like cryptocurrency regulation. These shifts may have both potential upsides—such as new investment opportunities—and downsides, including market uncertainty. By keeping an eye on how legislation evolves and staying informed about broader economic trends, you can make more confident decisions about your personal financial strategy.

No matter which direction policies take, it’s important to stay proactive with your investments. If you’d like to learn more about how these possibilities might affect your portfolio and discuss ways to keep your strategy aligned with your goals, schedule a complimentary call. We can review your current plan, explore potential adjustments, and help you feel prepared for any changes that lie ahead.

If you would like us to guide you through this difficult moment instead of going through it alone…

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Resources:

  1. https://www.reuters.com/markets/us/futures-build-trump-fueled-rally-tesla-jumps-2024-11-11/
  2. https://finbold.com/forget-bitcoin-the-o-g-meme-stock-gamestop-is-rallying/
  3. https://www.reuters.com/business/autos-transportation/tesla-options-draw-euphoric-trading-trump-win-fires-up-stock-2024-11-11/
  4. https://www.forbes.com/sites/digital-assets/2024/11/11/bitcoin-prices-reach-almost-90000-during-face-melting-rally/
  5. https://www.investopedia.com/watch-these-ether-price-levels-after-cryptocurrency-surges-to-3-month-high-8742964
  6. https://www.cnbc.com/2024/11/13/dogecoin-surges-20percent-after-trump-announces-a-department-of-government-efficiency-doge.html
  7. https://www.apmresearchlab.org/us-house-senate-control-2025
  8. https://www.bankrate.com/investing/trump-reelection-and-cryptocurrency-bitcoin/
  9. https://www.coindesk.com/policy/2024/07/27/if-we-dont-do-it-china-will-trumps-crypto-embrace-tightens-as-he-speaks-at-bitcoin-event-in-nashville
  10. https://www.newsweek.com/bitcoin-breaks-90-000-trump-regulations-1985114
  11. https://www.forbes.com/sites/saradorn/2024/02/02/trump-calls-central-bank-digital-currency-very-dangerous-after-vowing-to-prohibit-feds-digital-dollar/
  12. https://www.npr.org/2024/12/04/g-s1-36803/trump-crypto-paul-atkins-sec-chair
  13. https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/the-real-impact-of-the-tax-cuts-and-jobs-act.html#:~:text=The%20Tax%20Cuts%20and%20Jobs%20Act%20expiration%20will%20happen%20at,the%20tax%20sunset%20in%202025
  14. https://pro.bloombergtax.com/insights/federal-tax/what-is-the-future-of-the-tcja/#what-did-the-tcja-do
  15. https://taxfoundation.org/taxedu/glossary/pass-through-business-deduction-sec-199a/#:~:text=Business%20Deduction%20(Sec.-,199A%20Deduction),income%20from%20federal%20income%20tax
  16. https://bipartisanpolicy.org/explainer/the-2025-tax-debate-individual-estate-and-gift-taxes-in-tcja/#:~:text=TCJA%20doubled%20the%20estate%20tax,2018%2C%20adjusted%20annually%20for%20inflation
  17. https://pro.bloombergtax.com/insights/federal-tax/what-is-the-future-of-the-tcja/
  18. https://www.pbs.org/newshour/economy/trump-favors-huge-new-tariffs-how-do-they-work
  19. https://www.nbcnews.com/business/consumer/trump-s-washing-machine-tariffs-are-costing-americans-almost-100-n999461
  20. https://www.piie.com/research/piie-charts/2024/trumps-bigger-tariff-proposals-would-cost-typical-american-household-over
  21. https://foreignpolicy.com/2024/09/10/us-protectionism-biden-trump-tarrifs-harris-china/
  22. https://www.nber.org/system/files/working_papers/w26610/w26610.pdf
  23. https://econofact.org/steel-tariffs-and-u-s-jobs-revisited
  24. https://www.politico.com/news/2021/02/05/2020-trade-figures-trump-failure-deficit-466116
  25. https://www.ers.usda.gov/amber-waves/2022/march/retaliatory-tariffs-reduced-u-s-states-exports-of-agricultural-commodities
  26. https://www.reuters.com/graphics/USA-CHINA/SOLAR-HISTORY/gdpzkdeqlvw/
  27. https://www.thomsonreuters.com/en-us/posts/government/trump-economic-regulatory-implications/
  28. https://www.forbes.com/sites/davidblackmon/2025/01/15/8-quick-energy-policy-actions-to-expect-from-trumps-2nd-term/
  29. https://www.pwc.com/us/en/industries/health-industries/library/election-2024-trump-health-agenda.html

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