When Donald Trump was sworn in for his second term on January 20, 2025, he came armed with a pen and a plan. In the 364 days since, he has signed 229 executive orders—more than any president in a single year in American history. Add 57 memoranda and 118 proclamations, and the scope of executive action becomes staggering: the administration has fundamentally reshaped the American economic landscape without requiring a single vote in Congress.

As markets close Friday ahead of the Martin Luther King Jr. holiday—and with the first-year anniversary arriving Monday—it's worth examining how this unprecedented exercise of presidential authority has affected American finances, from Wall Street to Main Street.

The Tariff Revolution

No single policy initiative has been more consequential than the administration's aggressive use of tariffs. Through executive action, Trump has imposed duties on imports from virtually every major trading partner:

  • China: Tariffs now cover most Chinese imports, with rates reaching 25% or higher on many categories
  • Canada and Mexico: Despite the USMCA agreement, targeted tariffs have disrupted North American supply chains
  • Europe: Auto tariffs and retaliatory measures have strained transatlantic trade relations
  • Semiconductors: A new 25% levy on AI chip imports took effect this month, targeting Nvidia and AMD products

The economic impact has been substantial. According to the Tax Foundation, tariffs have raised the average American household's expenses by $1,100 in 2025. Goldman Sachs estimates consumers are now absorbing 55% of tariff costs, with that share potentially rising to 70% in 2026.

"Total tariff costs could hit $1.2 trillion this year, with consumers footing $592 billion in higher prices."

— Goldman Sachs analysis

The Regulatory Rollback

Beyond tariffs, executive orders have dismantled regulatory structures across multiple agencies:

Financial regulation: Orders directing agencies to reduce compliance burdens have accelerated deregulation in banking and securities markets. Regional banks in particular have benefited from reduced capital and reporting requirements.

Energy policy: Executive actions have opened federal lands to drilling, expedited pipeline approvals, and rolled back emissions standards. The energy sector's strong 2025 performance partly reflects this friendlier regulatory environment.

Labor rules: Orders affecting independent contractor classification, overtime regulations, and union organizing have shifted the balance of workplace policy.

The Credit Card Gambit

Earlier this month, Trump called for capping credit card interest rates at 10%—a dramatic intervention that would require Congressional action but signals the administration's willingness to challenge financial industry practices. The average American currently pays more than 19% interest on credit card debt.

Wall Street analysts give the proposal "slim odds" of passing Congress, and some economists warn such a cap could actually harm consumers by restricting credit availability. But the proposal illustrates the administration's populist economic positioning heading into year two.

The Market Scorecard

How have markets performed under this executive-heavy approach? The numbers tell a complicated story:

  • S&P 500: Up approximately 17.9% since Inauguration Day, though with significant volatility
  • Dow Jones: Approaching the 50,000 milestone, having set multiple record highs
  • Small caps: The Russell 2000 has outperformed in recent weeks, potentially benefiting from domestic-focused policies

The path has been anything but smooth. Markets dropped nearly 20% in seven weeks following the April tariff announcements before mounting a remarkable recovery. The administration's unpredictability has become a feature, not a bug, of the investment landscape.

The Fed Confrontation

Perhaps no executive-branch action has been more consequential—or controversial—than the administration's confrontation with the Federal Reserve. The Department of Justice investigation into Fed Chair Jerome Powell, the White House accusations against Fed Governor Lisa Cook, and the broader campaign against central bank independence have rattled markets and drawn unprecedented criticism from global central bankers.

Fourteen central bank heads signed a statement of solidarity with Powell this week, underscoring the international alarm at what one described as "an assault on the independence of the Fed."

What Year Two Might Bring

As the administration enters its second year, several executive initiatives loom:

401(k) for housing: Trump has signaled plans to let Americans tap retirement accounts for home down payments—a proposal that could reshape both housing and retirement saving.

Expanded tariffs: The semiconductor tariff that just took effect may be just the beginning of a new wave of targeted duties.

Fed leadership: Powell's term expires in May, and the administration's choice for the next Fed chair could have profound market implications.

The Investor's Dilemma

For investors, the executive order presidency presents unique challenges. Policy can shift rapidly based on presidential directive, without the deliberation and telegraphing that typically accompanies Congressional action. Traditional political risk models struggle to capture this dynamic.

Yet markets have generally adapted, with volatility elevated but not extreme by historical standards. The takeaway: investors have learned to expect the unexpected, pricing in a baseline level of policy uncertainty that would have seemed abnormal in previous administrations.

As year two begins, that capacity for adaptation will be tested again. The executive pen shows no signs of running dry.