⚡️ January 22: Orders in Overdrive, Stellantis Strategizes, and Canoo Crumbles

The Gist

✍️ Orders in Overdrive: Trump’s sweeping executive actions target trade, energy, and federal workforce rules, sparking legal battles and economic shifts.

🧭 Stellantis Strategizes: With 40% of U.S. sales tied to Canadian and Mexican imports, Stellantis braces for Trump’s tariff threats while rethinking EV strategies.

⚓️ Canoo Crumbles: EV startup Canoo folds, filing for Chapter 7 bankruptcy after failing to secure funding despite high-profile contracts.

BUSINESS

✍️ President Trump Signs Dozens of Executive Orders

President Donald Trump wasted no time flexing his executive power upon re-entering the White House, signing a flurry of orders aimed at reshaping the U.S. economic landscape.

While his sweeping actions touched on numerous policy areas, the business and economic orders were unmistakably central to his agenda, signaling aggressive moves to dismantle Biden-era policies and reignite Trump’s vision for “America First.”

Trade and Tariffs

Trump’s focus on reshaping trade relationships is front and center:

• Trade Investigations: Federal agencies will reevaluate trade deficits and unfair currency practices with China, Canada, and Mexico.

• Tariff Threats: Potential duties of up to 25% on Mexico and Canada, and 60% on Chinese goods are on the table.

• USMCA Review: The administration hinted at renegotiating the agreement, a move that could unsettle cross-border trade.

• External Revenue Service: A proposed agency would manage tariffs and duties, solidifying Trump’s reliance on trade penalties to protect U.S. manufacturing.

Energy: Fossil Fuels Back in the Driver’s Seat

Trump declared a national energy emergency, unlocking powers to expedite oil and gas projects while rolling back climate-focused regulations:

• Drilling Resumes: Offshore drilling bans and Alaskan wilderness protections were overturned.

• EV Standards Scrapped: Biden-era emissions rules favoring EVs are being replaced, signaling renewed support for gas-powered vehicles.

• Regulation Rollback: The directive calls for an overhaul of federal rules affecting coal, natural gas, and biofuels..

Federal Workforce: Restructuring from Within

Trump reinstated Schedule F, a controversial worker classification that removes job protections for policy-making roles. Paired with a federal hiring freeze (excluding national security, immigration, and public safety), this reshapes the operational capabilities of federal agencies.

Additionally, a regulatory freeze halts new rules pending review, giving industries faster approval pipelines but inviting challenges from oversight groups.

Legal Challenges Roll In

Trump’s executive orders didn’t just spark policy shifts—they ignited a wave of legal battles almost immediately. Advocacy groups and unions have already begun challenging several key actions:

• Birthright Citizenship Order: Within hours of its signing, Trump’s attempt to end birthright citizenship faced its first lawsuit. The plaintiffs argue it violates the Constitution’s 14th Amendment and could leave affected children stateless. With heavyweights like the ACLU and NAACP involved, this legal fight is expected to escalate quickly.

• Federal Workforce Overhaul: Trump’s reinstatement of “Schedule F,” which strips civil service protections from certain federal workers, prompted a swift lawsuit from the National Treasury Employees Union. The union claims the policy undermines job stability and injects political bias into federal operations, setting the stage for a high-stakes courtroom showdown.

🧭 Navigating New Rules: Stellantis Charts Its Course

Stellantis chair, John Elkann, spent four days in Washington D.C. meeting with Trump’s administration and attending the inauguration alongside other global business heavyweights.

In addition to Stellantis, automakers Ford, General Motors, and Toyota each donated upwards of $1M worth of money and vehicles for the celebrations.

Stellantis’s Stakes

With Trump mulling a 25% tariff on imports from Canada and Mexico starting February 1st, Stellantis finds itself in a delicate position—about 40% of the vehicles it sells in the U.S. are made in its Canadian and Mexican facilities. These include popular models like the Ram pickups from Saltillo, Mexico, and Chrysler minivans from Windsor, Canada.

While tariffs could spike production costs and squeeze margins, Stellantis has struck an optimistic tone.

“Trump’s clear focus on policies that support a robust and competitive manufacturing base in the United States is hugely positive,” the company said in a statement. “We look forward to working with him to strengthen our industry and the nation’s economy.”

The EV Factor

Adding to the policy maze, Trump’s revocation of Biden’s 2021 EV sales target order—a move aimed at slowing the electric transition—could impact Stellantis’s strategic planning.

While the company has been ramping up its EV lineup globally, a shift in U.S. policy may prompt reevaluation of its American EV strategy in favor of doubling down on its traditional gas-powered models like the Ram pickups and Jeep SUVs.

⚓️ Canoo Calls It Quits

After years of struggles, EV startup Canoo has officially reached the end of the road.

The company announced on Friday that it is ceasing operations immediately and filing for Chapter 7 bankruptcy in Delaware. Here’s what we know about Canoo’s financial crash:

• Assets and Liabilities: According to its filing, Canoo’s assets are valued at $126M, but the company owes over $164M to creditors.

• What’s Next: The U.S. will appoint a Bankruptcy Trustee to liquidate Canoo’s assets and distribute proceeds to creditors.

What Went Wrong?

• Funding Troubles: The company failed to secure backing from the U.S. Department of Energy’s Loan Programs Office or foreign investors.

• Operations Halted: Last month, Canoo idled its Oklahoma facilities and placed employees on mandatory unpaid leave—a clear sign of its precarious position.

• Leadership Exodus: A steady stream of executive departures, including all of Canoo’s founders, signaled instability long before yesterday’s announcement.

High Hopes, Harsh Reality

With competition intensifying and funding sources drying up, even companies with high-profile contracts are struggling to stay afloat. Canoo’s downfall really underscores the volatility of the EV startup market, even when things look promising.

For example, the company was working towards:

• NASA Shuttles: The startup partnered with NASA to produce shuttles for the Artemis crew.

• Walmart Deal: Canoo inked an agreement to build 4,500 electric delivery vans for Walmart.

With competition intensifying and funding sources drying up, even companies with high-profile contracts are struggling to stay afloat.

Aquila’s Final Statement

Canoo chairman and CEO Tony Aquila expressed his disappointment, thanking government and business partners involved with the company. “We are truly disappointed that things turned out as they did,” he said, reflecting on Canoo’s once-bright vision.