President Donald Trump delayed imposing tariffs on his first day in office, instead directing federal agencies to address trade deficits, unfair practices, and currency manipulation. Trump reiterated his commitment to rebuilding U.S. industry, promising “massive income” from foreign trade duties. Speaking at Capital One Arena, he stated tariffs would revitalize American businesses.
While no immediate tariffs were announced, a draft memo revealed plans to review China's adherence to the 2020 "Phase 1" trade deal. The agreement required China to increase U.S. purchases by $200 billion, but the targets were missed amid the COVID-19 pandemic. Trump also directed agencies to prioritize American workers in trade agreements, hinting at renegotiating the USMCA in 2026.
During his campaign, Trump proposed sweeping tariffs, including 60% on Chinese goods and 25% on imports from Canada and Mexico. Such measures would disrupt trade agreements, raise costs, and alter supply chains. Industry experts welcomed the measured approach, emphasizing the importance of addressing unfair trade practices to benefit American businesses.
Financial markets responded positively, with the dollar weakening against major currencies, boosting the euro, Canadian dollar, Mexican peso, and Chinese yuan. Global stocks rose, signaling relief among investors. Canadian officials praised the move, favoring a study of trade ties over immediate tariffs.
Despite the delay, experts believe Trump will push forward with his global tariff plan, a central component of his campaign. The administration aims to work closely with Congress, with officials like Commerce Secretary nominee Howard Lutnick and Treasury Secretary nominee Scott Bessent driving the agenda.
Trade analysts predict Trump's commitment to tariffs will soon take shape, with potential sweeping impacts on global trade dynamics.