President Trump Delays Tariffs
On his first day back in office, President Donald Trump is choosing to delay the implementation of new tariffs. Instead, he is instructing federal agencies to review trade relationships with China, Canada, and Mexico. According to an official from the incoming administration, a memo scheduled for release on Monday will address trade deficits, unfair trade practices, and currency-related concerns.
During his campaign, Trump promised significant tariffs, including a 60% tariff on Chinese goods and a 25% surcharge on imports from Canada and Mexico. However, he is now opting for a more cautious approach. The upcoming memo will examine China's compliance with the 2020 trade agreement and review the U.S.-Mexico-Canada Agreement (USMCA), which is scheduled for assessment in 2026.
"Immediate tariffs could disrupt long-standing trade agreements and destabilize supply chains," trade experts warned, highlighting the potential repercussions. However, the memo indicates a more deliberate approach, focusing on investigations under laws such as Section 232 and Section 301, tools Trump utilized during his first term.
The announcement reverberated through global markets, causing the U.S. dollar to decline sharply against the euro, Canadian dollar, and Chinese yuan. Meanwhile, stock markets rallied, reflecting optimism over the administration's measured approach. Despite concerns about potential tariffs, the administration's initial steps signal a focus on detailed trade reviews rather than abrupt policy shifts.
In a recent post, Trump hinted at future tariffs, stating, “We will begin charging those that make money off us with Trade, and they will start paying, FINALLY, their fair share.” Adding to this, the administration unveiled plans for a new "External Revenue Service," tasked with managing tariffs and duties collected by U.S. Customs and Border Protection.
This trade memo marks the beginning of Trump’s renewed push to reshape U.S. trade policies, although the immediate effects remain uncertain.
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