President Donald Trump issued a comprehensive trade memorandum on Monday, targeting unfair trade practices and currency policies of foreign nations. The memorandum specifically focuses on China, Canada, and Mexico, three of America's key trading partners. While Trump did not impose universal tariffs at this time, he indicated that tariffs could be introduced soon, particularly affecting America's neighbors.
The memorandum comes after Trump's previous suggestions of imposing a 20% levy on all imports. Moreover, he proposed a severe 60% tariff rate for Chinese goods. However, on his first day in office, Trump refrained from implementing these tariffs. Instead, he opted for an executive order to conduct an in-depth assessment of international trade practices. He also established the External Revenue Service, tasked with collecting duties on imports from countries subject to future tariffs.
The Wall Street Journal was first to report on Trump's decision to delay implementing tariffs immediately upon taking office. CNBC's Megan Cassella contributed to the reporting, highlighting the administration's discussions about a schedule of graduated tariffs. These tariffs could potentially increase by 2-5% each month on trading partners.
Monday night saw Trump sign several executive orders, one of which was dedicated to international trade matters. He warned that while no new levies were imposed on his inauguration day, tariffs might soon affect trade with Canada and Mexico. A 25% tariff on these countries was considered for February, underscoring the administration's focus on revising trade relationships.
Trump's camp has been vocal about reviewing and potentially restructuring trade agreements. The aim is to ensure fair trading conditions for American businesses and workers. This approach aligns with Trump's broader economic policies and his campaign promises to prioritize American interests.
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