Trump's Strategic Pause: Reevaluating Trade Relationships

President Donald Trump plans to issue a trade memo evaluating U.S. relationships with China, Canada, and Mexico. While not imposing new tariffs initially, the memo will push for investigations into trade deficits and unfair practices, affecting global markets. Trump aims to reinforce American manufacturing and renegotiate trade agreements.

President Donald Trump is set to issue a significant trade memorandum on Monday, directing federal agencies to scrutinize U.S. trade relationships with China, Canada, and Mexico, without imposing new tariffs immediately. This decision comes as a relief to global markets, easing concerns over sudden trade disruptions.

Although the memo will not introduce new tariffs, it will call for investigations into persistent trade deficits and the unfair trade practices of other nations. Trump aims to overhaul the trade system to favor American workers, intending to establish the External Revenue Service for collecting tariffs and duties.

Despite easing immediate fears, Trump's administration signals a long-term strategy to pressure major trade partners and further negotiate trade agreements. The move is expected to impact financial markets, trade agreements such as the U.S.-Mexico-Canada Agreement, and the compliance of nations with past trade deals.

(With inputs from agencies.)