Trump Holds Off on Immediate China, Canada & Mexico Tariffs, Calls for Study

— Trump declares ‘America’s decline is over’ a second inauguration, outlines vision as peacemaker with bold territorial goals. Donald Trump was sworn in as the 47th U.S. president on Monday, vowing to end America’s perceived decline and restore its global prominence. “The golden age of America begins right now,” Trump declared in his Inaugural Address delivered at the Capitol, shortly after he took the oath of office. Speaking in the Capitol rotunda, he described his legacy as one of peace and unity, tempered by controversial policies like reclaiming the Panama Canal and expanding U.S. territory. Trump said the U.S. would “reclaim its rightful place” as the most powerful country in the world and reiterated plans to rename the Gulf of Mexico as the Gulf of America.

Trump pledged to measure military success by avoiding unnecessary wars and emphasized territorial growth, including recent discussions on acquiring Greenland. His ambitions extend to space, with plans to plant the American flag on Mars.

On trade, Trump postponed imposing new tariffs and directed federal agencies to review trade relationships with China, Canada, and Mexico. A memo said trade officials will assess trade deficits, unfair practices, and currency issues, easing concerns about abrupt trade actions. “China’s adherence to this agreement will now be assessed, to determine whether enforcement or changes are required,” a fact sheet said.

While Trump campaigned on steep tariffs, including a 60% duty on Chinese goods, the administration now favors a methodical approach. The memo will evaluate compliance with the 2020 China trade deal and review the USMCA ahead of its 2026 assessment. On the U.S.-Mexico-Canada Agreement, Trump is set to direct his cabinet secretaries to assess its impact on American workers and businesses and make recommendations on whether the US should continue participating in it, according to the document.

The trade policy moves — detailed in a fact sheet — are aimed at “reversing the destructive impact of globalist, America last trade policy,” according to the document. The fact sheet also called for key federal agencies to address currency manipulation by other countries. “This action underscores the Administration’s dedication to reducing dependence on foreign nations for critical supply chains and reinvigorating the U.S. industrial base,” the fact sheet said.

Global markets rallied on the trade news, with stock markets rising and the U.S. dollar falling against major currencies. Trade experts noted the risks of immediate tariffs, emphasizing the importance of maintaining stable supply chains. The administration hinted at future tariffs and announced the creation of an “External Revenue Service” to manage duties collected by U.S. Customs. It is unclear how that would be different than the existing federal system under which the Treasury secretary establishes tariff collection rules and Customs and Border Protection administers them at ports of entry.

Bottom line: The trade review signals a calculated start to Trump’s renewed focus on U.S. trade policies. While Trump’s first-day executive orders did not immediately include these measures, the theme of “common sense” is expected to dominate his policy direction.

Foreign policy under Trump, guided by figures like Marco Rubio and Elbridge Colby (incoming Undersecretary of Defense for Policy), signals a shift from liberal internationalism to pragmatic realpolitik. Allies like Japan could benefit strategically, as they remain vital in countering Chinese aggression in East Asia.

Trump’s declaration of an “energy emergency” could bolster the legal rationale for some energy policies and plans to expedite permitting. U.S. Interior secretary nominee Doug Burgum, at a confirmation hearing last week, said emergency action was needed because of a looming “crisis” with the electric grid that he said could result in higher prices and slowing the growth of artificial intelligence data centers.

Of note: Meta CEO Mark Zuckerberg, Google CEO Sundar Pichai, Elon Musk, Jeff Bezos, Charlie Kirk, Tucker Carlson, Joe Rogan and Rupert Murdoch all got prime seats in the Rotunda — in front of Trump’s Cabinet nominees.

Also: Trump signed several documents in the Capitol, including the acting leaders of Cabinet departments. Link for details. Gary Washington is the acting USDA secretary. He previously served as the Chief Information Officer (CIO) for USDA and has an extensive background in government IT leadership: He was selected as USDA CIO in February 2018. Prior to becoming USDA CIO, he served as CIO for the USDA Animal and Plant Health Inspection Service and as CIO and Director of the Information Technology Division for the USDA Natural Resources Conservation Service. Washington also worked at the Food and Drug Administration as the Director of IT Governance and Deputy Director of Infrastructure. He spent 10 years in the U.S. Air Force as a Computer Operator and Command Control Specialist. Washington is the current president of the American Council for Technology. As Acting USDA Secretary, Washington will be responsible for leading the entire USDA, overseeing its various agencies and programs that support American agriculture, rural communities, and food security.

(Photograph by Saul Loeb, Pool-AP)

— Trump’s climate rollbacks and energy promises spark controversy. President Donald Trump has pledged to dismantle climate initiatives enacted during President Joe Biden’s administration, including ending the “Green New Deal,” revoking federal electric vehicle mandates, and rolling back energy efficiency standards. He also plans to halt federal land leasing for wind farms, rescind regulations perceived as burdensome to energy production, and withdraw the U.S. from the Paris climate agreement.

Trump has promised a 50% reduction in energy costs within his first year, despite current fuel prices making such a goal challenging without industry disruption. Environmental groups and Democratic-led states are gearing up to challenge these deregulatory moves in court, echoing strategies used during his first term.

— Japan’s Iwaya and U.S. Sec. of State nominee Rubio to hold first bilateral talks today. Japanese Foreign Minister Takeshi Iwaya and U.S. Secretary of State nominee Marco Rubio will meet in Washington today to discuss the Trump administration’s Indo-Pacific strategy. The meeting will also address U.S./Japan economic relations and defense cooperation, alongside concerns about China’s military buildup and North Korea’s missile program. Their discussions aim to set the stage for a February summit between Japanese Prime Minister Shigeru Ishiba and Trump. A Quad foreign ministers’ meeting involving Japan, the U.S., Australia, and India may also take place during Iwaya’s visit, underscoring the shared priority of regional security amid escalating tensions in the Indo-Pacific.

— Trump pledges to refill strategic oil reserve (SPR). President Donald Trump announced plans to refill the U.S. Strategic Petroleum Reserve (SPR) “right to the top” after it fell to its lowest levels since the 1980s during President Joe Biden’s administration. Speaking at his inaugural address on Monday, Trump vowed to lower energy prices, replenish the SPR, and bolster American energy exports. The SPR, with a maximum capacity of 700 million barrels, currently holds 394.4 million barrels after a record selloff under Biden. These drawdowns included the release of 180 million barrels to stabilize gas prices following Russia’s 2022 invasion of Ukraine. Efforts to refill the reserve under Biden stalled due to a lack of congressional funding after purchasing 60 million barrels. Congress would need to allocate additional funds to continue refilling the emergency oil stockpile. Trump is expected to act soon to restart licensing of U.S. LNG export terminals and support drilling in the Arctic National Wildlife Refuge (ANWR). Trump said he wanted the U.S. to take advantage of its vast oil and gas reserves, which he said would reduce energy prices, increase energy exports and refill the U.S. SPR.

— President Trump signed a presidential order ending the mandate for EVs and increasing oil and gas drilling. The 45Z program for renewable energy and biofuels was not addressed as it would take Congress to alter that program and that is unexpected due to bipartisan support for the tax incentive program.

— Trump ends use of CBP One App for illegal border crossings. President Donald Trump shut down the CBP One app for use by undocumented migrants seeking to enter the United States and canceled all existing appointments made through the platform. As of Jan. 20, the app’s functionalities, which previously allowed migrants to submit advance information and schedule appointments at eight southwest border ports of entry, have been discontinued, according to the Customs and Border Protection (CBP) agency. The app has faced criticism from Republicans, who argued it facilitated illegal immigration by masking the scale of the issue. Migrants were shocked as they found a crushing message on their phones: “Existing appointments have been canceled.” Potentially as many as one million migrants had their appointments wiped out.