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.”
Author Expertise and Experience: Stephen Silver
Stephen Silver is an award-winning journalist, essayist and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
