As Donald Trump prepares for his second term in office, much of the attention is focused on the impact of his policies on the economy, given that part of his reelection campaign was anchored on his potential to trigger growth in specific sectors.
Notably, Trump’s first term was mainly characterized by tax cuts, deregulation, trade wars, and immigration restrictions. Now, ahead of his anticipated reentry into the White House, Trump is primarily expected to continue or intensify these policies.
To this end, financial advisor Kurt Altrichter, in a post on X on January 11, identified sectors likely to outperform during Trump’s tenure. He believes heavily regulated industries will likely benefit from the Republican president.
Picks for you
10 sectors to look out for under Trump
Altrichter’s projection was supported by insights from RegData’s Industry Regulation Index, highlighting sectors that rank highest in regulation.
At the top of the list is the petroleum and coal products manufacturing sector, burdened by 24,551 regulations. It could benefit from Trump’s “drill, baby, drill” policy, which promises to ease environmental rules, open more federal lands for drilling, and boost oil and gas production. This may slow the shift to renewable energy, favoring traditional energy sources.
The electric power generation industry, with 13,783 restrictions, may see relief from deregulation, especially around emissions standards, potentially revitalizing coal and natural gas plants.
Third on the list is motor vehicle manufacturing, facing 12,479 restrictions, which could gain from deregulation in emissions and fuel standards, along with possible tariff reductions on imported parts, though trade policies may counterbalance this.
At the same time, with Trump in office, nondepository credit intermediation, with 11,611 regulations, could receive a boost from banking deregulation. Such a move could simplify compliance for financial institutions and boost investment.
Elsewhere, pharmaceutical and medicine manufacturing, hindered by 11,585 regulations, could see faster drug approvals and relaxed FDA oversight under Trump’s proposed leadership.
Airlines, accounting for 10,131 restrictions, may experience operational gains from reduced regulatory burdens, including streamlined certifications and lower environmental compliance costs.
The fishing industry, facing 9,123 regulations, could thrive with fewer restrictions, boosting domestic seafood production.
Scheduled air transportation, with 8,131 restrictions, might also benefit from reduced regulatory oversight, improving efficiency and profitability.
The ninth sector is oil and gas extraction, which has 7,333 regulations. With a second stint at the White House, Trump could help the industry with policies like restarting liquefied natural gas export permits and cutting environmental compliance costs.
Finally, the deep-sea, coastal, and Great Lakes water transportation sector, facing 7,283 restrictions, could benefit from eased regulations, improving shipping efficiency and lowering operational costs.
Conclusion
In summary, although deregulation is viewed as a positive aspect by some, there are concerns about potential heightened risks if fully implemented. For instance, deregulation could pose long-term risks, including environmental damage from relaxed climate regulations and increased financial instability from weaker oversight.
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