President-elect Trump’s Trade Plans
U.S. President-elect Donald Trump is expected to sign a series of executive orders as he prepares to take office for a second term. However, imposing tariffs on U.S. trading partners will not be one of his immediate actions.
Instead, Trump will issue a trade memorandum directing federal agencies to examine unfair trade practices and currency policies of countries like China, Canada, and Mexico. The memo, however, does not include any new tariffs on these nations.
Reports suggest that Trump’s approach to trade may be shifting from his campaign promises. While he previously discussed implementing universal tariffs, his current plan involves a gradual increase of tariffs on trading partners over time.
Many economists have expressed concerns that such protectionist trade policies could lead to higher production costs and consumer prices, especially as the global economy continues to recover from the impacts of the pandemic.
Contributed reporting by Megan Cassella