WASHINGTON — New tariffs on Canada and Mexico were a notable omission from the flurry of orders Donald Trump released in the early hours of his presidency.
Trump had pledged to impose 25% tariffs on both countries on Day One of his presidencyto pressure themto keep migrants and drugs out of the United States.
According to his advisers, the delay does not imply that Trump is abandoning the tariffs, but rather that he is allowing himself more time to engage in negotiations with both nations, conduct additional research on the matter, and appoint leading economic advisors who are currently undergoing the Senate confirmation process.
In response to questions about when the tariffs will be implemented, Trump told reporters Monday night, “I think we’ll do it Feb. 1. He reiterated that timeline Tuesday in taking questions again from the media, and said China could also besubject to a 10% tariffstarting Feb. 1.
However, the small print of a trade policy letter he released on Monday allowed his advisers until April 1 to submit a study on the fentanyl and migratory flows from China, Canada, and Mexico. The memo also called for recommendations the same day for appropriate trade and national security measures to resolve that emergency.
Trump’s secretaries of homeland security and commerce will conduct the study. As of right now, neither of his nominees—Kristi Noem and Howard Lutnick, respectively—have been confirmed.
“President Trump will proceed quickly with his America First trade agenda based on a set of foundational studies,” Peter Navarro, Trump’s senior advisor for trade and manufacturing, told NBC News in a statement on Tuesday. These actions will be done in Trump time, which is to say as quickly as possible on behalf of our economic and national security.
It would be difficult to exaggerate Trump’s support for tariffs, the trade tool he is anticipated to employ to increase his influence abroad and generate funds for his proposed tax cuts. Last year, Trump told the Economic Club of Chicago that tariff is the most beautiful word in the dictionary.
Some of his economic advisors are less enamored and fear a trade war with foreign nations. During Trump’s first term, a group of advisers who supported globalism clashed with Navarro, a nationalist wing that supported tariffs more.
It is anticipated that these disagreements will persist in the upcoming term, with some advisors advocating a more targeted approach and others a more aggressive stance on tariffs.
Within Trump s economic team, advisers have been discussing how to move forward on tariffs, a person familiar with the talks said. “Those involved in the discussions didn’t expect that to happen even in Week One,” the source said, adding that important economic and trade officials aren’t even on the job, despite Trump’s early threat to impose tariffs on Canada and Mexico on his first day in office.
Though Trump s faith in tariffs appears ironclad, Canada believes he is open to a deal in which he backs off. Speaking on condition of anonymity, a Canadian official stated in an interview that what Trump says is only posture.
“President Trump is a businessman and he is a negotiator, and a lot of his threats have been linked to things around the border that he wants to see changed,” the official added.
Trump’s criticism on Canada intensified during his Tuesday press conference. He claimed that both Canada and Mexico have permitted millions of individuals who shouldn’t be here to enter our nation. They had the opportunity to stop them, but they chose not to.
A comprehensive, multitrillion-dollar legislative package that Trump wants to pass incorporating his immigration, energy, and tax agendas may be financed in part by tariffs.
“Members that are involved in drafting [the package] know that they have to come up with a significant amount of revenue,” stated the individual who participated in negotiations about a tariff scheme, including those on Capitol Hill. And if the Trump administration does implement broad-based or universal tariffs, then they can account for that revenue. … So that s how they ll do it.
Another suggestion for making appropriate use of tariff proceeds was made by Trump ally and former House Speaker Newt Gingrich, a Republican: “Send Americans checks through Trump’s proposed new External Revenue Service.”
You can imagine a tariff rebate check to every American, Gingrich said in an interview. That would have considerable impact.