1. Big Tech reacts to Trump’s election win

The election of Trump to the White House on November 6 has been perceived as a victory for CEOs, particularly those in the tech industry who have maintained close ties with policymakers. With promises to lower corporate taxes and loosen regulations, the new administration could provide a more favorable business environment.

That sentiment was reflected in the stock market this week, with a handful of tech companies witnessing growth of well over 5 percent. After replacing Intel (NASDAQ:INTC) in the Dow Jones Industrial Average on November 1, NVIDIA (NASDAQ:NVDA) surpassed Apple (NASDAQ:APPL) to become the world’s most valuable company for the third time this year.

It achieved a market capitalization of US$3.43 trillion compared to Apple’s US$3.38 trillion as markets wrapped on Tuesday (November 5) and reached a historic valuation of US$3.6 trillion on Wednesday (November 6). Its share price is up 7.28 percent for the week.

In addition to NVIDIA’s gains, tech giants Broadcom (NASDAQ:AVGO) and Amazon (NASDAQ:AMZN) also experienced significant share price increases of 8.29 percent and 5.87 percent, respectively. Meanwhile, shares of Apple, Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META) and Taiwan Semiconductor (NYSE:TSM) saw more modest gains of 2.63 percent, 3.13 percent, 4.47 percent and 3.87 percent.

Investors may be optimistic after a Reuters report suggested that Trump may be planning to dial back antitrust measures enforced by the Biden administration and that he may even disrupt the proposed breakup of Google (NASDAQ:GOOGL), whose share price is up 5.09 percent for the week.

2. Bitcoin sets new price record

After a slump early in the week, Bitcoin reached a new all-time high after Trump was elected as the 47th president of the US in the early hours of Wednesday.

In a presidential race initially considered the closest in modern US history, the Republican candidate took an early lead by securing votes in North Carolina, Georgia and Pennsylvania, three out of seven key swing states.

At 5:34 AM EST on November 6, the Associated Press reported that Trump had won over his fourth swing state, Wisconsin, securing enough electoral college votes to be declared the winner.

As Americans cast their ballots and Trump’s prospects improved, the price of Bitcoin rose in tandem. It went from around US$68,750 on the morning of November 5 to over $75,000 just after 1:36 AM EST on November 6, surpassing its previous record of $73,000 set in March 2024.

Bitcoin performance, October 10 to November 7, 2024.

Chart via CoinGecko.

On November 6 at 5:35 AM EST, after Trump declared victory, Bitcoin was trading at around US$73,000. The price continued to rise as the markets opened on Wednesday, briefly breaking past US$76,000 before retreating slightly as Western markets closed. It traded in the US$74,000 range in Asia and retook US$76,000 at around 11:00 AM EST.

Unlike the short-lived rallies seen in recent weeks, Bitcoin has managed to maintain its gains so far. A Trump presidency is viewed as beneficial to the cryptocurrency industry, as his campaign promised to loosen regulations and replace regulators like US Securities and Exchange Commission Chairman Gary Gensler, who has had a contentious relationship with the industry’s major players.

Republicans also took a majority of the US Senate and are on track to take the House of Representatives, although the votes are still being tallied. With a more “crypto-friendly” political landscape, industry insiders are optimistic that innovation and adoptions will accelerate.

Bitcoin closed the week over 10 percent higher at US$76,739, slightly below its weekly high of US$77,239 reached earlier on Friday (November 8).

3. Tesla shares hit year-to-date high

Next to Bitcoin, Tesla (NASDAQ:TSLA) is the biggest winner after Trump’s win this week.

Its share price gained over 13 percent on Wednesday morning and is up over 31 percent for the week, trading at US$321.22, its highest level year-to-date.

Tesla performance, November 4 to 8, 2024.

Chart via Google Finance.

Tesla CEO Elon Musk actively supported Trump in the weeks leading up to the election, contributing roughly US$130 million to his campaign efforts. In September, Trump indicated his intention to offer Musk a role in the White House, focusing on streamlining government operations and cutting federal spending.

To achieve this, Musk has boldly predicted that he could eliminate at least US$2 trillion of federal spending. While he hasn’t specified exactly where these cuts would come from, reports suggest that Musk and Trump may target agencies responsible for regulating industries in which Musk’s companies operate. These agencies could include the Federal Aviation Administration (FAA), the Federal Communications Commission (FCC) and environmental agencies.

During his campaign, Trump also expressed intentions to reverse tax incentives and rebates for electric vehicle (EV) purchases established during the Biden-Harris administration. Although this might seem counterproductive to Musk’s Tesla operations, the CEO could be focusing on his other venture, SpaceX, which has forged strong ties with the federal government’s defense agencies.

In March it was reported that SpaceX had signed a contract worth US$1.8 billion in 2021 to build spy satellites with the National Reconnaissance Office, and the company won contracts for nine launches under the National Security Space Launch (NSSL) Phase 3 Lane 1 program on October 18.

However, issues between the FAA and SpaceX — such as a US$633,009 fine imposed by the agency in September for procedural violations related to Falcon 9 launches in 2023 as well as its decision to delay the test launch of SpaceX’s Starship mega rocket — have created tension between Musk and the agency.

Musk may have a vested interest in reducing the FAA’s regulatory oversight of SpaceX’s operations, as diminishing the agency’s funding could potentially clear a path for expanded commercial space exploration.

4. Super Micro shares audit update, reports preliminary earnings

Super Micro Computer (SMCI) (NASDAQ:SMCI) announced preliminary Q1 2025 results on Tuesday (November 5) with a renewed net sales forecast of US$5.9 billion to US$6 billion, missing analysts’ expectations of US$6.79 billion and slightly below the company’s previous guidance range of US$6 billion to US$7 billion.

The company also provided Q2 guidance, projecting net sales in a range of US$5.5 billion to US$6.1 billion for the quarter ending on December 31, 2024. This news led to a share price drop of over 24 percent on Wednesday morning.

The company also shared an update from an independent Special Committee formed to investigate concerns over the company’s accounting records initially raised by EY. In a statement, the committee said it found no evidence of fraud or misconduct by management or the Board of Directors in its investigation, and recommended that SMCI conduct “a series of remedial measures…to strengthen its internal governance and oversight function.’ A full report is expected next week.

Meanwhile, SMCI is working to file its delayed Form 10-K and regain compliance with Nasdaq listing requirements. After being issued a notice of noncompliance, companies have 60 days to either file the Form 10-K or submit a plan to regain compliance. If SMCI fails to do either and is delisted from the Nasdaq, it faces potential early repayment of up to US$1.725 billion in March 2029 of convertible notes.

5. Arm stumbles on Q2 revenue growth

Arm Holdings (NASDAQ:ARM) released its Q2 FYE25 results on November 6 (Wednesday), showing that revenue growth slowed to just 5 percent in the September quarter, down from 39 percent in the previous quarter.

This slowdown in revenue growth was primarily attributed to a decline in licensing revenue, the fees that Arm receives from companies that use its IP to develop their own chips. Licensing revenue was US$330 million in Q2, compared to US$472 million in Q1, a difference of 43 percent.

Arm Holdings performance, November 4 to 8, 2024.

Chart via Google Finance.

However, the decline was partially offset by royalty revenue, which increased by over 10 percent to US$514 million. Royalty revenue refers to the fees that Arm receives from companies that use its IP in products that are sold to end consumers.

While Arm’s share price initially dipped following the report, it rebounded strongly, up nearly 10 percent midday on Thursday (November 7). This positive shift likely reflects investor confidence in Arm’s strong position within the tech industry. The company collaborates with major tech players like Apple, Samsung (KS:5930) and NVIDIA, and its chips are essential components in a wide range of consumer and industrial electronics. The company concluded the week with its share price rising by 5.16 percent.

1. Black Iron (TSX:BKI)

Weekly gain: 77.78 percent
Market cap: C$24.33 million
Share price: C$0.08

Black Iron is an iron development and exploration company focused on advancing its Shymanivske project in Southeastern Ukraine.

The mineral resource estimate in the 2020 preliminary economic assessment for the project included measured and indicated resources grading 18.8 percent magnetic iron and 31.6 percent total iron from 645.8 million metric tons of ore, with additional inferred resources of 18.4 percent magnetic iron and 30.1 percent total iron from 188.3 million metric tons.

The report suggested that the project’s development would have an after-tax net present value at 10 percent of US$1.44 billion, with an internal rate of return of 34.4 percent and a payback period of 3.33 years.

Shares in Black Iron saw gains this past week after it announced on Thursday that it had signed binding royalty and offtake agreements with Anglo American (LSE:AAL,OTCQX:AAUKF). Anglo American will invest US$4 million in return for a 1 to 1.5 percent royalty, dependent on the price of iron, as well as offtake rights to whichever is higher: 60 percent of Phase 1 production or 2.4 million metric tons of iron per year for the life of the mine.

Among other terms, the agreement also provides Anglo American with the opportunity to further invest at least 15 percent of the Phase 1 construction costs, which would increase its offtake rights to 100 percent of Phase 1 production or 4 million metric tons of iron per year following the end of the conflict between Russia and Ukraine.

5. Adex Mining (TSXV:ADE)

Weekly gain: 50 percent
Market cap: C$10.16 million
Share price: C$0.015

Adex Mining is maintaining its past-producing Mount Pleasant polymetallic project in Charlotte County, New Brunswick, Canada.

Mount Pleasant is composed of 102 mining claims covering 1,600 hectares., and hosts two primary zones of mineralization. According to the company’s website, the Fire Tower zone is home to deposits with indicated grades of 0.33 percent tungsten and 0.21 percent molybdenum from 13.49 million metric tons. The North Zone hosts indicated grades of 0.38 percent tin, 0.86 percent zinc, and 64 parts per million iridium.

While shares of Adex saw gains this week, the company has not released news.

FAQs for Canadian mining stocks

How much does it cost to list on the TSXV?

There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.

The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.

These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.

How do you trade on the TSXV?

Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange’s trading hours.

With Glencore and Michael Gentile as the two largest shareholders, Group Eleven Resources (TSXV:ZNG) offers lucrative investment opportunities through zinc exploration in Ireland. The company’s project portfolio encompasses the PG West and Stonepark projects. PG West and Stonepark are contiguous, forming the largest exploration position in the Limerick region, renowned for its zinc potential. Group Evelen’s Ballywire discovery, a significant new finding in 2022, has demonstrated the presence of a high-grade mineralized system making it a potentially transformative asset for the company.

The close alignment with Glencore provides Group Eleven with both industry expertise and a collaborative advantage, further enhanced by Glencore’s presence on Group Eleven’s board. This strategic partnership reflects confidence in Group Eleven’s potential within Ireland’s prolific zinc landscape.

The PG West and Stonepark projects together span an extensive ground area, creating a formidable position in the Limerick region. This strategic region features the Limerick Volcanic Complex, hosting the second largest zinc deposit discovered to date in Ireland, Glencore’s Pallas Green deposit.

Company Highlights

• Group Eleven Resources is a mineral exploration company focused on advanced stage zinc exploration projects in Ireland.
• The company’s Ballywire discovery has revealed high-grade zinc-lead-silver mineralization spanning over 2.5 km, with notable grades of up to 40.8 percent zinc and 1,440 g/t silver (and local copper kicks up to 5.9 percent).
• Group Eleven’s strategic relationship with Glencore, which holds a 17.1 percent stake, includes Glencore’s representation on the board, enhancing industry collaboration.
• The PG West and Stonepark projects form Group Eleven’s core exploration focus, situated near Glencore’s Pallas Green deposit in a highly mineralized region.
• Carrickittle West, a high-potential target within Stonepark, is a Pallas Green ‘lookalike’ target, showing many geological similarities.
• Ireland ranks well on the Fraser Institute Annual Mining Survey and is No. 1 in the world for zinc found per square kilometer, reflecting numerous discoveries to date.

This Group Eleven Resources profile is part of a paid investor education campaign.

*Click here to connect with Group Eleven Resources (TSXV:ZNG) to receive an Investor Presentation

Kinross highlights Q3 operational success

Kinross’ third quarter operational highlights include strong performances at several mines.

Tasiast, a mine located in Central-Western Mauritania, achieved high throughput rates and remains one of the company’s lowest-cost assets despite higher royalty costs due to the elevated gold price.

Meanwhile, Fort Knox in Alaska benefited from the start of production at the Manh Choh project, resulting in record grade and recovery levels, which significantly boosted cashflow. At the Paracatu mine in Brazil, production rose due to higher grades, though year-on-year output was lower due to mine sequencing.

The company also said it made substantial progress on its exploration and development initiatives, releasing a preliminary economic assessment (PEA) for the Great Bear project in September.

The PEA projects annual production of over 500,000 ounces with all-in sustaining costs around US$800 per ounce for the first eight years, supporting Kinross’ expectations of a high-margin, top-tier operation.

Exploration drilling at Round Mountain and Curlew is ongoing, with promising grades and widths reported, while the closure plan for Kinross’ advanced exploration program at Great Bear is under review by the Ontario Ministry of Mines, with early works construction expected to begin in the near term.

Kinross notes that as part of its dividend program, it has declared a dividend of US$0.03 per common share payable on December 12, 2024, to shareholders of record as of November 28, 2024.

1. Democratic Republic of Congo

Mine production: 170,000 metric tons

The Democratic Republic of Congo (DRC) is by far the world’s largest producer of cobalt, with 170,000 metric tons of production in 2023, accounting for roughly 73 percent of global production. The country has been the top producer of the metal for some time, and is likely to remain crucial to the cobalt market for the foreseeable future.

However, cobalt mining in the DRC is associated with rampant human rights abuses and child labor, due in part to the large presence of unregulated artisanal mining. Attempts have been made to regulate the DRC’s artisanal mining sector. But with hundreds of thousands of people relying on artisanal mining for income, eliminating it completely isn’t possible.

Efforts to date include the creation of a new state company, Entreprise Générale du Cobalt, to buy and market all artisanal cobalt mined in the DRC; it was set up in 2019 and struggled to make progress. However, in February 2024, it signed an agreement with state miner Gecamines for exclusive mining rights to five mining areas.

Aside from that, the Responsible Minerals Initiative, in cooperation with the Global Battery Alliance, has drafted a framework for a regulated artisanal mining sector. The DRC’s mines minister formally approved the ASM Cobalt Standard in 2022, and plans for assessing its effectiveness at pilot sites are being developed.

Outside the DRC’s artisanal mining sphere, cobalt is largely produced as a by-product of copper mines, including the Tenke Fungurume mine, owned by the CMOC Group (OTC Pink:CMCLF,HKEX:3993); Metalkol RTR, owned by Eurasian Resources Group and the KOV; and the Mutanda and Mashamba East mines, owned by Glencore (LSE:GLEN,OTC Pink:GLCNF). While the CMOC Group has ramped up cobalt production at Tenke Fungurume, Glencore has dialed back its production.

2. Indonesia

Mine production: 17,000 metric tons

Indonesia has ramped up production to become the second largest producer of the EV metal, with 17,000 metric tons of cobalt in 2023 compared to only 2,700 MT of cobalt in 2021. This rapid change was the result of an increase in investment in Indonesia’s battery metals supply chain, predominantly from Chinese companies, which moved in after Indonesia banned nickel ore exports in 2019. The country’s higher cobalt production has come from four new high-pressure acid leaching (HPAL) facilities that process ore to produce both nickel and cobalt in mixed hydroxide precipitate, which can then be exported.

The first two HPAL operations came online in 2021 as part of the existing Indonesia Morowali Industrial Park. The facilities were developed by QMB New Materials, a joint venture between Tsingshan Holding Group, GEM (SZSE:002340), CATL (SZSE:300750) and Hanwa (TSE:8078). As of late 2023, two others are also operating in the country — one run by Huayue, owned by Tsingshan and CMOC Group, and one run by Halmahera Persada Lygend, owned by Lygend Resources (HKEX:2245) and Trimegah Bangun Persada (IDX:NCKL).

In mid-2024, partners Eramet (EPA:ERA) and chemical producer BASF (OTCQX:BFFAF,FWB:BASF) decided against executing the planned US$2.6 billion Sonic Bay nickel-cobalt hydrometallurgical complex due to nickel market dynamics, including low prices and oversupply. Sonic Bay would have processed ore from the Weda Bay nickel mine to produce 7,500 MT of cobalt and 67,000 MT of nickel per year.

According to a market report released in May 2023 from the Cobalt Institute, Indonesia has the potential to increase its cobalt output 10 fold by 2030. In the same vein, data from Benchmark Mineral Intelligence indicates that Indonesia’s 2030 cobalt output will make up 20 percent of global production compared to 1 percent in 2021 and 5 percent in 2022.

While the market has been searching for an alternative to the DRC for its cobalt, both Indonesia’s nickel industry and this rapid build out come with their own environmental concerns.

3. Russia

Mine production: 8,800 metric tons

After rising in 2022, Russia’s cobalt production declined in 2023, falling from 9,200 metric tons to 8,800 metric tons. While the country’s cobalt reserves stand at 250,000 MT, Russia is still well behind the DRC in terms of production. Large Russian miner Norilsk Nickel produces cobalt and is among the world’s top five producers of the mineral.

With concerns about DRC cobalt running high, some automakers have been calling for increased electric vehicle battery production in Europe. There was hope that this push could boost Russia’s future cobalt production — however, that may now be out of the question while the country wages war against Ukraine.

In April 2022, the US hit Russian cobalt with a 45 percent duty that was set to expire on January 1, 2024. The sanctions on Russian and Belarusian cobalt were extended in June 2024, and in September the US imposed a 25 percent tariff on Chinese cobalt.

4. Australia

Mine production: 4,600 metric tons

As the DRC becomes increasingly challenging for miners and as investors try to divert their interests away from Africa, Australia is another country that’s receiving more attention — the island nation’s cobalt reserves are the second largest in the world at 1,700,000 MT.

Despite holding a large amount in reserves, Australian cobalt production contracted year-over-year from 2022 to 2023. After output spiked to 5,900 metric tons in 2022, cobalt production declined to 4,600 metric tons in 2023.

As is the case for many other countries on this list, cobalt is produced in Australia as a by-product of copper and nickel mining. The country’s nickel mines are located in the western part of the country, mostly around the Kalgoorlie and Leonora regions.

Additionally, the Australian government has been sending geologists to search for cobalt in mine waste, an effort that bore fruit when Queensland geologist Anita Parbhakar-Fox tested a copper mine waste sample that graded 7,000 parts per million cobalt.

The CEO of Australian company Cobalt Blue Holdings (ASX:COB,OTC Pink:CBBHF) described the discovery as a game changer to the Financial Times, estimating there could be up to 300,000 MT of cobalt in Australian mine waste.

Another important cobalt project in the country under Cobalt Blue is the Broken Hill project, which will allow for cobalt production on-site, rather than extracted as a by-product of nickel.

Broken Hill is planned to begin production in 2026, and is anticipated to have an output of around 4,000 metric tons of cobalt annually over a 20 year mine lifespan.

5. Madagascar

Mine production: 4,000 metric tons

Madagascar’s cobalt-mining industry produced 4,000 metric tons in 2023, up significantly from the 3,500 MT in 2022rebounded through 2021, putting out 3,500 MT in 2022, and 4,000 MT in 2023.

Much of the country’s cobalt production comes from the Ambatovy nickel-cobalt mine, owned through a joint venture by Japanese company Sumitomo (TSE:8053) and a Korean state-owned entity. The mine has faced production and profitability issues.

In August 2024, the companies submitted a debt restructuring plan to a London court. According to media reports, Sumitomo, the project’s major shareholder, has accumulated 410 billion yen in losses stemming from the project, including a 265.5 billion yen total impairment loss.

Most recently, in October, a pipeline moving ore from the mine to a processing and refining plant had to be shut down due to damage. While production began slowly ramping up at the end of the month, Ambatovy’s future remains uncertain.

6. Philippines

Mine production: 3,800 metric tons

The Philippines is the sixth largest cobalt producer in the world. The country’s cobalt production has remained steady over the last two years, coming in at 3,800 metric tons. The Asian country is also a top nickel producer.

The fate of mining in the Philippines was up in the air for a while as former President Rodrigo Duterte and former Environment Secretary Roy Cimatu called for a shutdown of all mines in the country based on environmental concerns. However, Duterte seemed to have a change of heart in early 2021, lifting a ban on new mine permits in an effort to boost revenues.

His successor, President Bongbong Marcos, has ordered the country’s Department of Environment and Natural Resources to enforce stricter guidelines and safety protocols on both small- and large-scale mines. He hopes to bring illegal mining operations into compliance so they can operate legally and with safer conditions for employees.

7. Cuba

Mine production: 3,200 metric tons

Cuban cobalt production fell in 2023 to 3,200 metric tons, down from 3,700 MT in the year prior.

The country’s Moa region is home to the Moa joint venture nickel-cobalt operation held by Canadian firm Sherritt International (TSX:S,OTC Pink:SHERF) and the General Nickel Company of Cuba.

Moa uses an open-pit mining system to produce lateritic ore, which is processed into mixed sulfides containing nickel and cobalt using HPAL. The country’s state-owned nickel miner is the sole operator of the Che Guevara processing plant at Moa.

8. New Caledonia

Mine production: 3,000 metric tons

New Caledonia, a French overseas territory in the Pacific Ocean east of Australia, is known for its mineral industry, primarily focused on nickel and cobalt mining. According to a 2019 USGS Mineral Yearbook report, nickel mining contributes roughly 7 percent of the country’s annual GDP.

Although cobalt production in New Caledonia has increased year-over-year, climbing from 2,000 MT in 2022 to 3,000 metric tons in 2023, the island nation’s primary cobalt producing mine has been embroiled in controversy.

The Goro nickel and cobalt mine, which was brought into operation by Vale (NYSE:VALE), has been impacted by weak nickel prices and electoral reform unrest. In 2020, Vale opted to sell the project as part of a broader company restructuring. The following year, Goro was acquired by Prony Resources New Caledonia consortium, a joint venture owned by New Caledonian entities and international commodities trader Trafigura.

Earlier in 2024, the mine was again making headlines when Trafigura Group declined to provide additional funding for Prony Resources Nouvelle-Calédonie, as part of a French government rescue plan for New Caledonia’s struggling mining sector.

9. Papua New Guinea

Mine production: 2,900 metric tons

Papua New Guinea has made the list of top cobalt producers by country for the sixth year in a row. In 2023, the small country off the coast of Australia produced 2,900 MT of cobalt as a by-product of nickel production, staying nearly flat with the previous year’s output of 3,000 MT.

The country’s main cobalt producer is the Ramu nickel mine near Madang, a joint venture between private company MCC Ramu NiCo, Nickel 28 Capital (TSXV:NKL,OTC Pink:CONXF) and the Papua New Guinea government.

A mid-October report from Benchmark noted that by 2030, Chinese companies are expected to control 85 percent of cobalt output from Papua New Guinea, enhancing China’s global share of mined cobalt supply to 46 percent.

10. Turkey

Mine production: 2,800 metric tons

Taking the tenth spot on the list is Turkey, which has seen its annual cobalt output rise from 2,100 MT in 2022 to 2,800 metric tons in 2023. The nation also boasts large reserves totaling 91,000 MT.

A 2021 report from the British Geological Survey, underscored the importance of Turkey’s cobalt potential amid the energy transition, noting “the greatest cobalt resource potential lies in laterite deposits in the Balkans and Turkey and in magmatic and black shale-hosted deposits in Fennoscandia.”

It went on to point out that in the Balkans and Turkey, 27 nickel laterite deposits are known to contain cobalt in significant quantities, with several deposits holding over 10,000 MT of cobalt metal. Currently, only nickel is extracted from these deposits, but advancements in processing technologies like high-pressure acid leaching may allow for cobalt recovery in the future.

In September 2024, the planned expansion of the Meta nickel-cobalt mine in Gördes sparked local resistance. Community members raised concerns that the project was destroying forests, draining water and harming agriculture. The mine is one of only a few nickel mines in Europe, making it important to the EU’s ability to meet European demand for electric vehicle battery materials.

FAQs for cobalt production

How Trump’s policy promises could affect inflation

While Powell did not address Trump’s proposed policies in his statement, if president elect Donald Trump does enact some of the policies he promised frequently in his campaign, it may increase deficit spending and cause further inflation, which could influence future interest rate decisions.

For example, his proposed changes would see tariffs applied broadly to goods entering the United States, which will make everyday goods more costly for Americans. This is because tariffs are paid by importers in the US when they purchase goods from overseas, and the cost increases are passed along to the consumers.

Likewise, sweeping border reform with the promise to deport 20 million undocumented migrants would cost US$88 billion a year to enforce. The impact would be felt by business owners who are already struggling to fill job openings, especially in the agricultural sector. This will likely lead to higher costs at the grocery store or reduced availability of produce.

Additionally, the loss of undocumented workers would see US$100 billion per year in lost tax revenue, requiring the government to increase deficits to pay for government programs.