Trump's Tariff Tactics: A New Global Trade Strategy

Following his inauguration, President Donald Trump considered imposing tariffs on imports from Canada and Mexico due to concerns over illegal immigration and drug trafficking. While initially postponing immediate tariff actions, Trump directed a comprehensive investigation into U.S. trade deficits, signaling potential global economic shifts.

President Donald Trump, after taking office, refrained from immediately imposing tariffs on Canada and Mexico, as initially suggested. Instead, he proposed considering a 25% duty on imports from these nations, citing issues with illegal immigration and drug trafficking across U.S. borders. The administration will probe trade deficits and currency practices.

The presidential memo commissioned the Commerce and Treasury departments, alongside the U.S. Trade Representative, to assess economic and national security implications of longstanding trade imbalances, with potential recommendations for tariffs or other corrective strategies. The anticipated policy shift sparked a rally in global stock markets.

Trump hinted at possible tariffs on European imports and emphasized the potential fiscal benefits of such measures, suggesting they could revitalize American industry. The assessment will include China's adherence to the Phase 1 trade deal and may lead to further tariffs if non-compliance is found. Overall, the approach signals a recalibration of U.S. trade policies under a new administration.

(With inputs from agencies.)