Donald J. Trump has been sworn in as the 47th president of the United States, and despite promising to implement a range of hefty tariffs immediately upon his return to office, it looks as though the new administration is now taking a more cautious approach to trade policy.
During his 2024 presidential campaign, Trump said that he would impose tariffs on several different countries, including Canada and Mexico. Instead, Trump has now issued a memorandum outlining his administration’s vision for U.S. trade policy.
As outlined by The Wall Street Journal, the new administration’s memorandum covers a variety of trade-related issues, including trade deficits, unfair practices, and strategic partnerships, particularly as they relate to China, Canada, and Mexico. The memo also calls for an evaluation of the U.S.-Mexico-Canada Agreement (USMCA), the latter of which is slated for formal evaluation in 2026.
Other highlights of the memo include an evaluation of counterfeit goods and the de minimis tariff exemption for imports under $800, as well as the feasibility of establishing a new “External Revenue Service” to handle tariff revenue collection. It’s unclear how this new federal agency would differ from the U.S. Customs and Border Protection. The administration also plans to revisit the Section 232 tariffs on steel and aluminum, which were enacted during Trump’s first term and maintained under the Biden administration.
At present, there is no indication that the new administration will immediately implement any new tariffs, much to the relief of U.S. trade partners, although it’s possible that may change in the future. Per The Wall Street Journal, reports indicate that the Trump administration is now navigating internal debates over the strategic use of tariffs, and while some advisers support sweeping and aggressive measures, others favor a phased or more targeted approach. It’s possible that a slower approach may lead to the groundwork needed for future trade policy adjustments.
Some critics have argued that sweeping tariffs could lead to U.S. job losses and higher prices for various U.S.-made goods, including vehicles.