No Trump tariffs on day one
The new Trump administration is holding fire on its promised tariffs.
- For now.
On Tuesday, Nikkei reported that it had seen a draft memo from the Trump team offering insight into the administration’s approach to trade.
Some context: On the campaign trail and since his November victory, Trump has pledged wide-ranging tariffs on US trade partners, including a 60% tariff on all Chinese goods.
The memo said the White House will "Investigate and remedy persistent trade deficits that harm our economy and security."
- "This action underscores the Administration's dedication to reducing dependence on foreign nations for critical supply chains and reinvigorating the U.S. industrial base."
Don’t get too comfy:
- It’s unclear how long the investigation will take, but according to Nikkei, the lack of “day one” tariffs merely reflects an ongoing debate within Trump’s inner circle about which countries to target and how aggressively.
- On his first day in office, Trump said that the US could impose 25% tariffs on Canada and Mexico as soon as February 1.
Get smart: Tariffs are a cornerstone of Trump’s economic and foreign policy, and they’ll be making an appearance in one form or another before long.
- Beijing is ready to strike back hard if Trump goes after China.
Our question: Will Trump’s initial positive interactions with Xi Jinping soften his stance toward China and pave the way for a tariff-averting “deal” between Beijing and Washington?