Five takeaways from Trump’s opening trade salvo

Donald Trump did not impose any new trade tariffs on the first day of his second term, as markets had feared, but the US president did lay out an official blueprint for an “America First trade policy”.

A President’s note They called on federal agencies to fix “unfair business practices” and identify “currency brokers.” Trade agreements with China, Canada, Mexico and other partners are under review.

The message: The Trump administration was ready to use all means to restore trade flows to its advantage. Here are five takeaways from Trump’s opening remarks on his trade agenda.

The company has promised to “rate soon”.

Trump mentioned tariffs three times in his inaugural speech, warning investors and trading partners to expect “one day” tariffs. But he has also announced plans to set up a Foreign Revenue Service to collect tariffs, a sign that he has big plans to boost revenue from trade.

Josh Lipsky, senior director at the Atlantic Council think tank, said tariff decisions could be delayed but not abandoned. “The president was worried about the market’s reaction on Tuesday and didn’t want it to spoil his first day.”

The president’s “America First” memo provided the framework for the new agenda, a series of assessments of unfair trade practices, the causes of U.S. trade deficits, and whether competitors are capturing currencies and unfairly taxing U.S. businesses.

So does Trump Calculate the speech And repeated threats of 25 percent tariffs on Canadian and Mexican revenues, despite the countries’ free trade agreement. When asked about the prospect of universal tariffs on anyone doing business with the US, the president said: “We can.” But we are not ready for that yet,” he said.

“The experience of the first time is to wait for tariffs too soon,” warned Lipsky, adding that the administration did not yet have a full economic team and wanted to establish strong legal bases for any activities.

First, focus on the neighbors

Trump appears to be prioritizing actions against America’s closest trading partners, saying he is preparing to implement tariffs on Canada and Mexico on February 1.

Trump has had no qualms about hitting out at U.S. allies in his first term, citing national security concerns and imposing tariffs on steel and aluminum imports. But by going public with Canada, analysts say it’s signaling that no country is immune from the self-proclaimed “tariff man.”

Trump’s trade memo on April 1 ordered a review of trade relations with Canada and Mexico (which the president did not elaborate on after Trump’s tariff warning). Preparations will begin for a comprehensive review of the USMCA trade agreement in July 2026.

A priority in the trade memo was Trump’s commitment to cutting “illegal immigration and fentanyl flows,” particularly from Mexico and Canada.

Many supply chains for US manufacturers; Especially car manufacturersReliance on jobs in all three countries and those businesses could pressure Trump to drop the threat.

On Tuesday, Canadian Prime Minister Justin Trudeau said his country was taking Trump’s proposals “seriously.” He would respond. If tariffs are imposed, Mexican President Claudia Schinbaum said she would focus on “declarations rather than rhetoric.”

Systematic reform including China

Other parts of the president’s policy cover ways to make sweeping changes in Washington’s relationship with its trading partners.

“I don’t expect changes on the margins,” said Kelly Ann Shaw, a partner at law firm Hogan Lovells and a former Trump business adviser. “However, a review of the entire commercial and economic instruments will result in significant action.”

The broader initiatives launched by the memo include currency manipulation. Trump has previously accused China of devaluing the renminbi to raise the price of its exports.

The president has ordered his trade representative, Jamieson Greer, to review U.S. trade deals during the first Trump administration, including some designed to boost exports to China.

Several sections of the memo instruct various US economic officials to conduct a broader review of US economic relations with China, including a review of tariffs on Chinese goods.

Greer was asked to identify new deals with significant market access for “American workers, farmers, ranchers, service providers and other businesses,” indicating that a second Trump administration may be open to creating new trade deals.

“It’s a very big deal. It makes me think there’s going to be a trade bill in Congress at some point,” said Everett Eisenstat, a partner at the Washington law firm Squire Patton Boggs. “Once business accounts start moving, they become very useful and the rules don’t change very often.”

Trade in weapons to achieve different objectives

Trump has linked tariffs to other policy goals beyond reducing trade deficits.

He promised that duties on EU products would remain in place unless members of the bloc buy more US oil and gas. Trump on Monday indicated that tariffs on China may also be suspended Agreement on the ownership of Tik Tok. Beijing has said it will impose tariffs on up to 100 percent of Chinese imports if it does not agree to a deal to sell at least 50 percent of the app to American companies.

Anahita Thoms, head of international trade at Baker Mackenzie in Germany, said Trump is using tariff threats to increase leverage.

“I don’t think he’s fading, but he’s using it as a bargaining chip,” she says. Now “every country knows what kind of compromise it has to make to be in good shape”.

The threats caused collateral damage. “Tariffs will be inflationary,” Thomas said. Trump said, “They don’t want to do anything that will have a negative impact on inflation.”

‘Global’ tariffs and international implications

U.S. imports from countries such as Vietnam and Mexico increased during Trump’s first term. This shows the trend of Chinese manufacturers seeking to bypass US tariffs by exporting to the US in third countries.

Trump’s trade team recognizes this. His memo asks Greer to consider additional tariff reforms to address “trafficking through third countries.”

The memo asks officials to consider whether “globally additional tariffs” could be used to correct the “large and persistent” annual U.S. trade deficit. This suggests that something similar to the universal tariffs that Trump promised on the campaign trail could still emerge.

His threat may encourage other countries to increase trade with each other. Since December The European Union has fulfilled the agreements As he restarted talks with Malaysia after more than a decade with the Mercosur group of South American countries and Mexico.

In a statement to the Financial Times, Malaysian Prime Minister Anwar Ibrahim said the global trading system would survive. “The First Shock” Trump’s trade barriers.