Trump's Trade Agenda: Evaluating Ties Without Immediate Tariffs

Donald Trump plans to issue a trade memo to review U.S. trade relationships with China, Canada, and Mexico without immediately imposing new tariffs. The memo directs federal agencies to investigate trade deficits and currency policies, focusing on China's 2020 trade deal compliance and the USMCA agreement.

Donald Trump is set to issue a wide-ranging trade memo on Monday, which will not impose immediate tariffs, according to sources from the Wall Street Journal. Instead, the memo will instruct federal agencies to review trade relationships with China, Canada, and Mexico.

President-elect Trump, assuming office on Monday, has previously promised tariffs of 10% on global imports, 60% on Chinese goods, and a 25% surcharge on Canadian and Mexican products. These tariffs could disrupt trade, escalate costs, and provoke countermeasures. The Wall Street Journal reported that Trump's upcoming memo directs agencies to tackle persistent trade deficits and investigate unfair trade and currency practices by other countries.

The memo highlights China, Canada, and Mexico for detailed evaluation, urging officials to examine Beijing's adherence to its 2020 trade agreement with the U.S. and the status of the USMCA. However, it will not enact new tariffs at this stage, the newspaper noted. As of now, Trump's team has not responded to the Journal's report.

(With inputs from agencies.)