Donald Trump hit the ground running in his second term in office, issuing a large number of executive orders, on everything from immigration policy to DEI, as well as a slew of pardons, on his first two days in office.
Trump also announced plans for tariffs– but unlike the other measures, they will not go into effect immediately. Plus, the tariffs were characterized as something that “could” happen, rather than “will.”
What Is Donald Trump Thinking on Tariffs?
Per The Washington Post, Trump told reporters this week that 25 percent tariffs on goods from Canada and Mexico may be announced on February 1. Trump is threatening to do so, “because they’re allowing vast numbers of people and fentanyl to come in.”
And even if the tariffs are announced on February 1, they might not necessarily go into effect on that day.
On his first day in office, Trump also threatened tariffs on China, the European Union, and the BRICS countries, and at one moment seemed to forget that Spain is not part of BRICS, something that led to “some head-scratching and jitters over possible tariffs in Madrid,” per an AP story.
So the question is, is Trump serious about the tariffs, or is he using the threat of them to try to force concessions ahead of time from the other countries?
A Threat, Not a Promise
Trump had earlier vowed to impose the Canada and Mexico tariffs on his first day in office, but that’s not what happened.
Per NBC News, “the delay doesn’t mean Trump is backing off the tariffs, his advisers say, but it does suggest he’s carving out more time to negotiate with both countries, study the issue further and put in place top economic advisers who are still moving through the Senate confirmation gauntlet.”
Trump’s nominee to serve as Treasury Secretary, Scott Bessent, cleared the Senate Finance Committee this week and is expected to be confirmed by the full Senate in the coming days.
Back in 2019 …
During his first term, in June 2019, Trump had threatened tariffs on Mexico, but dropped the threat after the two countries reached a deal on immigration enforcement.
“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico,” Trump tweeted Friday. “The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended.”
The Markets React
Wall Street seemed to be relieved that the tariffs didn’t arrive on Day 1 . Per The Guardian, the stock markets were “largely calm” in the first full day of trading in Trump’s second presidency.
“Once again, Trump appears to care little for who are perceived to be allies or foes, with Canadian and Mexican currencies hit hard … So much for the plan to raise tariffs by 2% a month,” Joshua Mahony, an analyst at Scope Markets, told The Guardian.
Former President of the United States Donald Trump speaking with attendees at the 2023 Turning Point Action Conference at the Palm Beach County Convention Center in West Palm Beach, Florida.
The View from Canada
On Tuesday, per CNN, Canadian Prime Minister Justin Trudeau promised that Canada will “respond robustly” if “unfair tariffs” are imposed by Trump.
“While less than 1% of fentanyl and illegal immigrants that enter the United States come from Canada, our government has already acted to address the concerns raised by the president about border security with an over $1 billion comprehensive border plan,” Trudeau said Tuesday. “We’re already working collaboratively to keep our citizens safe on both sides of the border.”
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Jim
January 23, 2025 at 7:05 pm
Trump is on the edge of the precipice: threatening Russia with some kind of hyper “financial penalties” anyway he can.
Mistake.
If Trump escalates to — hyper-sanctions — he owns the war politically…
It’s Biden’s war… don’t let him off the hook.
Zelensky wants to drag the United States into Ukraine beyond its proxy sponsorship into something more… U.S. boots on the ground.
If Zelensky gets his way with G. I. Joe on the ground, it’s one step from a General European War and Trump totally & completely owns the war… and his base will hate him.
Also, calling for a must “cease fire” before any negotiations also traps Trump into a corner of having to escalate after Putin rejects Trump’s ultimatum.
Trump needs to meet Putin as soon as possible and hear what Putin has to say, digest it… and, consider counter proposals.
Remember, the war supporters would love to trick Trump into escalation because that continues the war.
And, mires Trump’s domestic agenda in a quagmire of controversy over a foreign war… not his making.
It’s Biden’s war.
Please, President Trump, don’t make the mistake the war supporters want you to make.