Donald Trump’s second presidential term has ushered in a period of rapid policy changes across multiple sectors of government. His administration’s early actions have drawn both fervent support and intense criticism, reshaping the trajectory of the United States.
Domestic policy: restructuring government
During his first 100 days in office President Trump signed 143 executive orders. To offer some context, this is only 25 fewer executive orders than his predecessor signed during his entire four-year term.
These orders have addressed areas such as immigration, government efficiency, and diversity initiatives. One of the most prominent actions was the establishment of the Department of Government Efficiency (DOGE) tasked with reducing federal spending and bureaucracy. This initiative has resulted in significant layoffs of federal employees.
Immigration and border policies
The administration has enacted several measures to tighten immigration controls, from declaring a national emergency at the US-Mexico border to issuing blanket bans for travellers arriving from certain countries as well as increased vetting procedures on immigrants from certain others and halting refugee admissions.
Additionally, drug cartels have been designated as terrorist organisations, and efforts are underway to end birthright citizenship and initiate mass deportations of undocumented immigrants.
Diversity, equity and inclusion (DEI) initiatives
President Trump signed several executive orders aimed at eliminating DEI programs within the federal government. These orders mandate the shutdown of DEI offices, rescind previous affirmative action policies, and have led to the termination of numerous federal employees associated with DEI initiatives. They also terminated equity-related grants and contracts.
Education policy
The Trump administration has initiated steps to dismantle the Department of Education, with Secretary Linda McMahon tasked with facilitating its closure and returning authority over education to state and local communities. While full closure requires congressional approval, the executive order has already led to significant restructuring within the department.
Foreign policy: a new global strategy
Trade and tariffs
President Trump’s trade policy has seen increased tariffs on imports. These measures aim to protect domestic industries and will likely lead to higher prices for consumers.
The imposed tariffs have largely been lower than those initially announced and as of May 2025, the final tariff levels are still not determined.
Middle East engagement
The Trump administration has adopted a more transactional approach to Middle East foreign relations, focusing on economic deals and regional stability. President Trump’s recent trip to Saudi Arabia, Qatar and the UAE marked a significant shift in US foreign policy. The administration also announced the lifting of US sanctions on Syria and met with Syrian President Ahmed al-Sharaa, signalling a departure from previous diplomatic stances.
Environmental policy
On his first day in office, President Trump signed an executive order directing the withdrawal of the United States from the Paris Agreement and other international climate commitments. This move has been met with strong opposition from environmental organisations and climate researchers, who express concern over the potential impact on global emissions reduction efforts.
What About the Ongoing Outlook?
As of May 2025, President Trump’s second term has been characterised by swift and decisive policy changes across multiple areas, which has resulted in some market volatility and may continue to do so. These actions reflect a continuation of his “America First” agenda, focusing on reducing federal involvement, renegotiating trade relationships, and prioritising domestic interests. The long-term effects of these policies will unfold over the coming years, with ongoing debates about their impact on various sectors and the broader global landscape.
By Lindsay Frost, CFP® CA(SA)
