The memorandum, set to be signed by Trump, directs federal agencies to examine trade deficits and unfair trade and currency practices of other nations. Specific focus will be placed on China’s adherence to the 2020 trade deal and the status of the United States-Mexico-Canada Agreement (USMCA).
The news of no immediate tariffs spurred a positive response in global financial markets. The U.S. dollar weakened against major currencies, including the euro, Canadian dollar, Mexican peso, and yuan, while stock indices showed gains.
During his presidential campaign, Trump promised to introduce steep import tariffs, including 60% on Chinese goods and 25% on imports from Canada and Mexico, to address trade imbalances and curb illicit drug and migrant flows.
However, rather than immediate tariffs, the administration is considering a more methodical approach, including investigations under national security and unfair trade practices statutes.
During his first term, Trump initiated a tariff war with China, imposing duties on steel, aluminum, and Chinese imports. A 2020 trade deal required China to increase purchases of U.S. goods by $200 billion, though its implementation was limited due to the pandemic.
Trump also plans a review of USMCA in 2026, and experts speculate that new tariff threats could serve as a tactic to open renegotiations sooner.
“The president is committed to delivering on his promises and advancing changes that protect American workers and businesses,” said former White House trade advisor Kelly Ann Shaw.
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