Trump aims for a balanced budget within a relatively short timeframe, possibly by next year. He plans to attract top talent through a Gold Card immigration programme, selling it for $5 million, which could generate $1 trillion if 200,000 are issued, subject to a cap of 250,000.

The administration intends to double energy capacity and collaborate with Ukraine on rare earth materials, although it will not make security guarantees for Ukraine. Trump maintains a positive relationship with President Xi but supports continued tariffs, including those on Canada and Mexico scheduled for April 2nd.

Tariffs on the EU are soon to be announced, potentially leading to a 25% tariff on automobiles, which could impact EURUSD currency movements.

Balancing the budget within such a short period would require dramatic shifts in spending and revenue, something that has not been done in decades. If this approach gains traction, bond markets may start pricing in tighter fiscal policies, affecting yields. Given the scale of what he proposes, traders should monitor fiscal policy announcements closely as they can quickly influence interest rate expectations.

The immigration programme serves two purposes—raising funds and attracting skilled individuals. If successful, it could bring in a notable inflow of capital. However, it depends on demand from wealthy individuals willing to invest for residency. Traders might want to assess how markets react to the prospect of increased investment flows and the broader economic effects of such a scheme.

Increasing energy capacity while securing rare earth materials from Ukraine suggests a long-term focus on energy independence and technological production. If this expands domestic mining and production, commodity markets could shift. The absence of a security pledge to Ukraine may lead to geopolitical uncertainty, which could play into risk sentiment in the weeks ahead.

His relationship with Xi remains constructive, but tariffs are staying in place. Trade restrictions on China have already influenced supply chains, and the extension of tariffs indicates that existing pressures will not ease soon. Trade with Canada and Mexico also faces fresh challenges, with April 2nd marking a critical point for tariffs on those nations. Traders should pay close attention to how businesses react, particularly in industries with integrated North American supply chains.

Tariffs aimed at the EU could add another dimension to global trade policies. The automotive sector is particularly exposed, with a 25% tariff on European vehicles likely to reshape trade flows. If that happens, EURUSD could react to deteriorating trade relations and the potential for EU countermeasures. Considering recent European data, further strain on exports would add to existing concerns in the region.

These developments highlight the need to keep a close eye on fiscal moves, trade escalations, and energy policies. Markets move on policy changes, and the next few weeks could bring volatility as more details emerge.