Tariff "lane change" and medical reform de-intermediation: How will Trump's longest State of the Union address reconfigure the 2026 capital market landscape?

Notice that President Trump delivered the longest State of the Union address in TV history on Tuesday, claiming to have achieved a "transcendental reversal." Ahead of crucial midterm elections later this year, he is attempting to sell his economic plan to the American people. In an era of slim majority in Congress and partisan polarization, the speech featured a mix of ceremony, confrontation, and chaos. Democratic Congressman Al Green was removed from the chamber for disrupting the speech. Trump invited the gold-medal-winning men's Olympic ice hockey team to the gallery, and also awarded multiple medals to honor veterans and active-duty military personnel. During the 1 hour 47 minute speech (the longest State of the Union address in history), the President delivered a rally-style speech that was more about political attacks than policy proposals. Here are the key points of President Trump's 2026 State of the Union address: Trade disputes Following the Supreme Court's overturning of his emergency tariff decision last week, Trump toned down his rhetoric, calling the ruling "regrettable" and "disappointing." He said he will use other legal authorities to implement new tariffs and noted that the new system might be more "complex," but he believed it will ultimately have more staying power. Trump said, "Congressional action will be unnecessary," "It has withstood the test of time and approval. Over time, I believe that tariffs paid by foreign countries will, like past, substantively replace the modern income tax system." Partisan politics Trump did not miss any opportunity to attack Democratic politicians and undocumented immigrantssometimes even in the same sentence. Pointing to Democratic lawmakers on his right, he said, "I'm telling you, these people are crazy." Throughout most of the speech, Republicans stood and applauded, while Democrats remained expressionless, occasionally shouting at the President and interrupting his speech. He announced that Vice President JD Vance would lead a "anti-fraud war" and claimed that rampant corruption exists in federal programs and states led by Democrats. He called on Congress to pass the voter identification provision in the "Save America Act"a move that could disadvantage low-income and married female votersand end "no-excuse" absentee voting. Welfare programs Trump promoted his healthcare plan, but offered little detail beyond the concept. "I want to stop paying all this money to big insurance companies and give the money directly to the people, so they can buy their healthcare, which will be better, lower cost healthcare." He touted his "TrumpRx" prescription drug plan, a government-supported platform similar to GoodRx, that provides discounts to uninsured individuals. He also announced a plan to provide $1000 in matching funds next year for Americans without a 401(k)-like deferred compensation plan. However, Trump's plan sounded similar to a set of retirement reforms passed by Congress during Joe Biden's presidency in 2022. Summary of achievements Like many such speeches, Trump spent most of the time touting his achievements in his first year back in office: including tax cuts for exempting tips income and overtime wages, establishing "Trump" accounts for newborns, decreasing inflation rates, and highs in the stock market. He attributed his achievements in military actions against Iran and Venezuela, peace agreements in Gaza and the Indo-Pakistani border, and closing the border to immigrants and illegal drugs from Mexico to himself. America's 250th anniversary Trump used patriotism and nationalism themes, with America's 250th Independence Day as the recurring theme of his speech. He paid tribute to national heroes, including 99-year-old World War II veteran Buddy Taggart; awarded medals to Coast Guard Petty Officer Second Class Scott Ruskan for participating in a large-scale rescue mission; and honored the late conservative podcast host Charlie Kirk's widow. He also awarded the Medal of Honor to Chief Warrant Officer Eric Slover, the helicopter pilot involved in the capture of Venezuelan President Nicolas Maduro, and to Navy pilot Royce Williams, a pilot in the Korean War.