President Donald Trump issued a memorandum Monday directing federal agencies to evaluate U.S. trade policy, paving the way for potential new tariffs. Agencies have until April 1 to report their findings and provide recommendations.
The action veers from the day one tariffs the president promised following his election in November. Trump said at the time that he would levy a 25% tariff on imports from Canada and Mexico his first day in office. He also said he would increase tariffs on China by an additional 10%.
Although the president did not sign executive orders to implement tariffs immediately, the memorandum indicates his administration is still planning to use the mechanism to advance its U.S. manufacturing and trade policy initiatives. Trump said Monday his promised tariffs on Mexico and Canada could begin as soon as Feb. 1, according to the Associated Press.
In Monday’s memorandum, Trump called on the Secretary of Commerce, the Secretary of the Treasury and the U.S. Trade Representative to investigate the causes of the U.S. trade deficit and recommend potential remedies, including global supplemental tariffs.
The president also directed agencies to review potentially unfair trade practices by other countries and the impact of the U.S.-Mexico-Canada Agreement on the U.S. In addition, Trump singled out the U.S.’ trade agreement with China for review by the USTR to determine whether to raise tariffs on imports from the country.
During his inauguration address earlier in the day, Trump indicated his intent to “overhaul” the U.S. trade system. He added that the U.S. “will tariff and tax foreign countries” and establish an “external revenue service to collect all tariffs, duties and revenues.”
As part of the memorandum, Trump directed the Secretary of the Treasury, the Secretary of Commerce and the Secretary of Homeland Security to evaluate the feasibility of such a service.
