Donald Trump is officially the next president of the United States of America. His policies – increased tariffs, domestic production, shifts in energy use, and possible moves towards wider adoption of crypocurrencies – have wide ranging market impacts, which are sometimes dubbed the “Trump Trade”.
We used our agentic AI tool – Alfa™ – to create an automation to comb through all mentions of the Trump Trade and what its possible impacts will be. Here’s the report Alfa™ created, or, the Alfa™ Angle.
The companies impacted by the Trump Trade
ENPH
- Enphase Energy is a renewable energy technology company that would be vulnerable to policy shifts under Trump’s trade stance, as evidenced by their stock dropping more than 18% following Trump’s election victory due to concerns about the reversal of clean energy initiatives.
- core business revolves around solar energy technology, with their primary products being microinverters, batteries, and energy management systems for solar installations.
- significant exposure to government incentives and regulatory support, including benefiting from programs like the Advanced Manufacturing Production Tax Credit under the IRA for U.S. manufactured microinverters.
- reliance on renewable energy policies and clean energy initiatives makes them the type of company that could be negatively impacted by a shift toward traditional energy sources and away from renewable energy support.
GEV
- GE Vernova Inc. is a major player in the renewable energy sector, with significant operations across wind power, solar, hydroelectric, and grid solutions, demonstrating a clear focus on clean energy technologies.
- faced challenges in its offshore wind segment, including blade failures and manufacturing issues that led to significant financial losses.
- continues to expand its renewable energy portfolio through various initiatives, including launching new HVDC centers in Berlin and the UK, developing tidal energy projects, and establishing joint ventures for renewable energy development in Italy.
- heavy reliance on renewable energy markets and continued investment in clean energy infrastructure, along with its diverse portfolio of wind, solar, and grid solutions
LULU
- Lululemon relies heavily on imports for its product manufacturing, with approximately 42% of its products manufactured in Vietnam, 16% in Cambodia, 11% in Sri Lanka, 10% in Indonesia, and 8% in Bangladesh, while about 40% of its fabric comes from Taiwan and 26% from China Mainland.
- no domestic manufacturing capabilities and instead operates primarily as a designer, distributor, and retailer of athletic apparel, footwear, and accessories.
- This heavy reliance on international manufacturing and sourcing makes Lululemon particularly vulnerable to trade-related cost increases, as evidenced by their explicit acknowledgment that trade restrictions, including tariffs, quotas, embargoes, and customs restrictions could increase their costs and impact their supply chain.
