President Trump says former trade policies were 'historic blunders'
President Donald Trump delivered his second State of the Union Address on Tuesday, February 5.
The president's long-awaited speech touched on highly-contentious topics including his call for a wall on the U.S.-Mexico border, the upcoming 2020 presidential election, tax reform, U.S.-China trade relations and prescription drug prices. Millions are expected to watch the full address, but for investors in particular, Trump's stance on these crucial policies have the potential to drastically influence the stock market.
According to MarketWatch, stocks closed higher on Tuesday with the S&P extending its winning streak as investors awaited Trump's address. Analysts at Yahoo Finance, however, predict some of Trump's points may be "market moving."
Nearly 50 minutes into the address, Trump touched on the '"travesty" that is the U.S-China trade war. "To build on our incredible economic success, one priority is paramount: Reversing decades of calamitous trade policies -- so bad -- we are now making it clear to China that after years of targeting our industries and stealing our intellectual property, the theft of American jobs and wealth has come to an end," said Trump. According to Trump, the imposed tariffs on Chinese goods has brought "millions and billions of dollars" into America.
The president also accredited NAFTA as a "historic trade blunder." He went on to say, "the U.S.-Mexico-Canada agreement, the USMCA, will replace NAFTA and deliver for American workers like they haven’t had delivered to for a long time."
"I know that Congress is eager to pass an infrastructure bill, and I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting-edge industries of the future. This is not an option, this is a necessity," he pleaded.
It is unclear whether Trump's remarks will impact stocks.
Following Trump's speech, Stacey Abrams will make history as the first black woman to give the official response to the State of the Union address.
Watch President Trump's State of the Union address here.