Trump's Tariffs: First Day Back at White House Brings Delay, but Not Abandonment
On his first day back in office, President Donald Trump refrained from implementing major tariffs but signaled that significant new duties are imminent.
Imminent Tariffs on Mexico and Canada
"We are thinking in terms of 25% on Mexico and Canada," Trump stated, suggesting that tariffs could be implemented on February 1.
Tariffs on China
Trump declined to provide specific details on new tariffs for China, citing ongoing negotiations. However, he reiterated that tariffs remain a possibility, even as the countries discuss the fate of TikTok.
America First Trade Policy
Trump signed an executive order establishing an "America First Trade Policy," directing officials to identify and address unfair trade practices by other countries.
Market Reaction
Despite the initial delay in implementing tariffs, experts expect market volatility to continue. S&P 500 futures rose while the US dollar index initially dropped but later spiked again.
Long-Term Plans
Trump's inaugural address outlined his commitment to overhauling the trade system and protecting American interests. He vowed to "immediately begin" this process, enriching US citizens through tariffs on foreign countries.
Experts' Views
"Trump's restraint today is a temporary measure," said Jon Hilsenrath of Serpa Pinto Advisory. "The markets love it, but experts predict a looming trade fight."
Potential Legal Challenges
Trump could use the International Emergency Economic Powers Act to impose tariffs. However, this option is legally untested and could face challenges.
Alternative Options
Trump could also invoke Section 301 and Section 232 tariffs, which are more legally sound but may require a slower and less aggressive approach.
Treasury Plans
Trump expressed his belief that the anticipated tariffs will generate "massive amounts of money" for the Treasury Department and plans to establish an External Revenue Service.