Throughout the last several months, President Donald Trump has promised to impose strict tariffs on his first day back in office to force economic trade equality between the U.S. and its allies, including Canada and Mexico. So are they coming?
It appears that Trump has slowed his plans to implement the tariffs immediately on in his second term, instead issuing a memo that directs federal agencies to study the nation’s trade relationships with China, Canada, and Mexico.
Trump's memo basically explores the option of tariffs by directing an investigation of trade inequalities, but it does not actually issue any new tariffs, which are taxes on goods that are imported from abroad.
The new president did say during an Inauguration event "I think we will do it February 1st." But the memo does not outline a timeline.
The Wall Street Journal first obtained the memo, which also seeks to make progress on a trade pact Trump had put in place in 2020 between the US and China. It also looks to a 2026 review of the updated NAFTA deal with Canada and Mexico.
The memo goes on to say that agencies will assess the updated NAFTA deal and “make recommendations” about how the US will move forward with it, the Journal reported.
This isn’t the first time Trump has made bold promises on the campaign trail but slowed his actions once he entered the White House.
In November, after winning the 2024 election, Trump vowed to implement harsh tariffs on the three countries the second he returned to office, but now it appears cooler heads have prevailed.
“On January 20th, as one of my many first executive orders, I will sign all necessary documents to charge Mexico and Canada a 25-percent tariff on all products coming into the United States, and its ridiculous open borders,” Trump wrote on social media in November.
As Americans looked to Trump and Democratic nominee former Vice President Harris for their solutions to the economy, Trump focussed on trade deals, saying that overhauling the current system and implementing tariffs could help right the ship.
While Trump, or any president, can implement tariff orders without approval from Congress, many were skeptical about the plans, including the Federal Reserve, which noted Trump’s efforts could drastically affect their economic projections.
“The effects of trade policy changes could be larger than the staff had assumed,” the Fed’s December minutes say.
The questions about Trump’s plan to overhaul the US’s trade policy go beyond domestic concerns.
“Foreign financial market pricing reflected weaker-than-expected foreign data releases, expectations of further policy easing by foreign central banks, and potential changes in U.S. trade policy,” Fed meeting participants noted.
The National Retail Federation and the National Foreign Trade Council both released statements on Monday discussing their eagerness to work with Trump and ensure new trade approaches are handled with care to protect businesses and the economy.
“We look forward to working with the president to see that the resulting policy changes are carefully targeted and create an environment that attracts investment and protects critical industries,” the NRF said in its release.
“American companies need to maintain a competitive advantage globally and access to open markets,” the NFTC said Monday. “We are keen to work with the Administration on the details of its economic strategy, including its trade, tax, and tariff policies.”
While Trump made serious promises, they now seem to have been threats to spark negotiation as he has yet to install any new trade policy.