On his first day back in office, President Donald Trump is holding off on imposing new tariffs. Instead, he is directing federal agencies to study trade relationships with China, Canada, and Mexico. According to an incoming administration official, a memo set to be issued Monday will focus on trade deficits, unfair trade practices, and currency issues.
Trump, who had pledged steep tariffs during his campaign, including a 60% tariff on Chinese goods and a 25% surcharge on imports from Canada and Mexico, is taking a more measured approach. The memo will assess compliance with the 2020 trade deal with China and review the U.S.-Mexico-Canada Agreement (USMCA), which is set for evaluation in 2026.
“Some duties would tear up long-standing trade agreements and threaten to upend supply chains,” said trade experts, emphasizing the potential fallout from immediate tariffs. However, the memo signals a slower process, with investigations under laws like Section 232 and Section 301, which Trump used during his first term.
The announcement sent shockwaves through global markets. The U.S. dollar fell sharply against the euro, Canadian dollar, and Chinese yuan, while stock markets rallied on the news. Despite fears of tariffs, the administration appears focused on methodical trade reviews rather than abrupt action.
In a recent post, Trump hinted at future tariffs: “We will begin charging those that make money off us with Trade, and they will start paying, FINALLY, their fair share.” The administration also announced the creation of the “External Revenue Service,” which will handle tariffs and duties collected by U.S. Customs and Border Protection.
This trade memo marks the start of Trump’s renewed focus on reshaping U.S. trade policies, though the immediate impact remains uncertain.