U.S. President Donald Trump held back on implementing tariffs on his first day back in the White House despite his earlier threats directed at Canada, Mexico, China, and later on, the European Union (EU).
On January 20, following his inauguration address, Trump enacted around 200 executive actions, memoranda, and proclamations that primarily concentrated on issues related to climate, energy, and immigration. However, he refrained from taking any tariff-related actions that day.
In November 2024, Trump announced on social media that starting from his first day in office, he would implement a 25% tariff on all products imported from Mexico and Canada through an Executive Order, along with an increase in tariffs on goods from China.
Reports later that day, though, indicate that 25% tariffs would be imposed on Canada and Mexico on February 1 as part of efforts to compel both countries to take action against illegal migration and the smuggling of illegal drugs into the U.S.
The next day, Trump vowed to hit the EU with tariffs, noting trade imbalances. He said his administration was also discussing a 10% punitive duty on Chinese imports, which could take effect as early as February 1.
The proposed 10% tariff against China is, however, significantly lower than the 60% Trump called for during his campaign trail last year.
Meanwhile, in his inauguration speech, Trump promised a new agency to collect tariffs, duties, and revenues from overseas trade into the U.S.
"Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties and revenues," he said. "It will be massive amounts of money pouring into our treasury coming from foreign sources."
During Trump's first term as president, from 2017 to 2021, the process of introducing increased tariffs took around two years.
Tariff-related actions by the new U.S. President are being closely monitored by cargo and shipping players due to their impact on global trade and supply chains.
