Trump holds back on tariffs on day 1 of PresidencyTrump holds back on tariffs on day 1 of Presidency
In a slew of Executive Orders US President Donald Trump did not increase tariffs on China, Canada, and Mexico that he’d previously promised, although said they would set up an External Revenue Service to “generate massive amounts of money”.

On Monday following his inauguration speech President Trump signed approximately 200 executive actions, memoranda and proclamations, including withdrawing the US from the Paris climate accord and a crackdown on immigration, but did not follow on tariffs as stated previously.
In November Trump stated on social media that he would impose 25% tariffs on all goods from Mexico and Canada via an Executive Order from the first day of his Presidency, as well as 10% tariff increase on all goods from China.
During in the signing of Executive Orders at the Oval office on Monday evening was reported to have said that 25% tariffs will be imposed on Canada and Mexico on 1 February.
Whether Trump imposes further tariffs on China could hinge on what happens with Chinese-owned social media app TikTok to which a 75-day reprieve has been given against a ban in the US. Trump said at the weekend he wanted to bring it under 50% American ownership. If China rejects the deal Trump threatened tariffs of up to 100% on Chinese goods. “Ultimately [Beijing] would approve it because we’d put tariffs on China,” he was reported as saying.
It was reported that an executive action signed on Monday directed the secretaries of Commerce and Treasury and the United States Trade Representative to investigate the causes of America’s trade deficits with foreign nations and to look into establishing an external revenue agency to collect tariff.
Whether it was legally possible for Trump to impose tariffs from Day 1 was had been questioned by commentators and experts. In Trump’s first term as President the process of introducing increased tariffs took around two years.
Action by Trump on tariffs is being closely watched by shipping for its impact on trade. With the timing on increased tariffs remaining uncertain it is expected to boost trade and benefit shipping with the US in the near-term as importers look to beat the increased charges. However, longer term it could dampen trade volumes into the US negatively impacting the shipping business.
In his inauguration speech Trump promised a new agency to collect tariffs, duties and revenues from overseas trade into the US.
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties and revenues. It will be massive amounts of money pouring into our treasury coming from foreign sources,” he stated.
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