US President Donald Trump disappointed markets with his lack of detail in his first speech to Congress last night.
He talked up “a new chapter of American greatness” as he attacked Barack Obama’s legacy and covered many of the same topics he has done previously including immigration, calls for increased border security and plans to replace Obamacare.
Perhaps the most notable remark, Trump also proposed raising taxes and tariffs on products shipped into America, but did not provide specifics on the plan.
“Currently, when we ship products out of America, many other countries make us pay very high tariffs and taxes — but when foreign companies ship their products into America, we charge them almost nothing,” Trump said.
He said the US had lost 600,000 factories since China jointed the World Trade Organisation.
On immigration, Trump called for a “merit-based system” that would save “countless dollars, raise workers’ wages and help struggling families. Under the system, which is used in Canada and Australia, immigrants are selected based on their merit and skills.
He once again called on Congress to repeal and replace Obamacare, which he claimed would expand choice, increase access, lower costs and provide better healthcare.
Oanda analyst Craig Erlam said: “All eyes were on Donald Trump’s appearance before Congress on Tuesday evening as investors hoped the new President would shed some detail on the ‘big’ spending plans and ‘phenomenal’ tax reforms that have propelled equity markets in the US to record high levels.
“Unfortunately, despite Trump’s more upbeat approach by his own standards, he once again stuck to his generic yet bold pledges which as of yet, don’t appear to have disappointed investors too much. While it’s understandable that these things take time to plan and implement properly, markets have been way ahead of the game since Trump’s victory and there comes a time when we need to know exactly what they’re rallying on.”
Despite the lack of details, Trump sounded a more optimistic note than his inaugural speech when he focused on condemning the media for “fake news”. He stuck fairly closely to a prepared speech.
“I am here tonight to deliver a message of unity and strength, and it is a message deeply delivered from my heart,” Trump said.
“A new chapter of American greatness is now beginning. A new national pride is sweeping across our nation. And a new surge of optimism is placing impossible dreams firmly within our grasp. What we are witnessing today is the renewal of the American spirit”
Story by ProactiveInvestors