Trump's Inauguration Day: Tariffs on Hold, Economic Plans Unveiled
Donald Trump's first day in office saw a delay in implementing his proposed tariffs, a move likely intended to minimize market volatility.
In his inaugural address, Trump emphasized his commitment to overhauling the trade system to protect American workers and businesses. However, a report from the Wall Street Journal indicated that the administration would initially focus on outlining its trade vision without immediate tariffs.
The delay has been met with mixed reactions. Some experts believe it indicates a more cautious approach, while others anticipate that aggressive trade action is still likely in the near future. Ian Bremmer of Eurasia Group warned of a potential trade war between the US and China, while others expressed skepticism about the prospect of a "Phase 2" trade deal between the two nations.
Despite the postponement of tariffs, Trump has previously vowed to impose significant levies on imports from China, Mexico, and Canada. He could potentially invoke the International Emergency Economic Powers Act to implement tariffs more quickly, although this option is legally untested.
Other potential measures include Section 301 and Section 232 tariffs, which are more legally sound but may necessitate a slower and less aggressive approach. Capitol Economics analysts believe that tariffs are still likely to materialize and could lead to market volatility.
Trump has also announced plans to establish an External Revenue Service to capitalize on the additional revenue expected from increased tariffs.