Trump’s ‘Day One’ Tariffs on Hold—For Now
- President Donald Trump did not impose new tariffs on foreign-made goods on his first day in office, instead instructing federal agencies to assess trade relationships with China, Mexico, and Canada.
Newly inaugurated President Donald Trump did not follow through on his promise to levy new tariffs on “day one.”
The Commander in Chief, who was sworn in on Monday, issued a number executive orders related to immigration, the economy and energy within hours of taking office, but he declined to pull the trigger on any new duties on foreign-made goods—a central tenet of his campaign.
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Trump instead issued a memo to federal agencies instructing them to assess America’s trade relationships with China, Mexico and Canada , including compliance with the China Phase One trade deal brokered during his first term, along with the U.S.-Mexico-Canada Agreement ( USMCA ).
Senior advisors to the president confirmed this plan to the Wall Street Journal, telling the outlet that Trump plans to direct federal agencies to develop strategies to alleviate trade deficits with other nations and address trade and currency policies that he deems unfair. The source told the outlet that Trump is seeking to advance his trade agenda “in a measured way.”
However, by Monday evening, the president was ringing the tariff bell once again. In an exchange with reporters from the Oval Office, Trump reiterated his intentions to impose new duties. “We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people” into the U.S., he said. “I think we’ll do it February 1.”
During his inaugural address to a crowd of government leaders and supporters gathered inside the Capitol building, Trump highlighted the deepening of a trade philosophy defined by protectionism. “From this moment on, America’s decline is over,” he said.
Trump promised that he would “immediately begin the overhaul of our trade system to protect American workers and families.”
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he added, claiming that his administration plans to establish an “External Revenue Service” to collect tariffs and duties. “It will be massive amounts of money pouring into our treasury coming from foreign sources,” he said.
Throughout his campaign, Trump touted a trade agenda characterized by sweeping duties that would impact virtually every U.S. trade partner.
He floated a 10 percent to 20 percent universal baseline tariff, and repeatedly threatened to up tariffs on China-made goods to 60 percent to 100 percent. Following the election, Trump began taking swipes at the country’s North American neighbors, Mexico and Canada, threatening each with new 25-percent tariffs as recourse for issues with mass migration and drug smuggling.
The president also revived a recent argument that the U.S. should retake control of the Panama Canal , which he said was “foolishly” given to the country of Panama in 1999. In his inaugural address, Trump claimed that “American ships are being severely overcharged” for passage through the canal, including U.S. Navy vessels.
In December, Panama’s government announced a new fee and duty structure that will raise prices on Canal reservations.
“We have been treated very badly from this foolish gift that should have never been made and Panama’s promise to us has been broken. The purpose of our deal and the spirit of our treaty has been totally violated,” he said. Trump also raised concerns about China’s operations in the Canal—the only mention of the country throughout the entirety of the speech.
But Trump’s ire for China and a rapidly growing roster of U.S. adversaries was apparent throughout the address.
“From this day forward, our country will flourish and be respected again all over the world,” he said. “We will be the envy of every nation, and we will not allow ourselves to be taken advantage of any longer.”
This article was updated to reflect President Trump’s Monday evening comments from the Oval Office.
