US President Trump proposes no tariffs on first day in office

HOUSTON (ICIS)–US President Donald Trump proposed no new tariffs on his first day of office, and instead instructed his administration to investigate the nation’s trade deficit and other areas of trade policy.

The absence of any tariff proposal marks a contrast to his campaign platform and his subsequent threats after winning the election.

Tariffs would expose the US chemical industry to disruptions in trade flows, increased costs for chemicals in which the nation has deficits and the threat of retaliatory tariffs on its  exports of polyethylene (PE), polyvinyl chloride (PVC) and other plastics and chemicals.

Instead of proposing tariffs, Trump issued a memorandum that called for the following:

• The Secretary of Commerce to investigate the nation’s deficit and its consequences to the economy and to national security.
• The Secretary of the Treasury to investigate the creation of an External Revenue Service to collect tariffs and duties.
• The US Trade Representative to investigate any unfair trade practices.
• The US Trade Representative to prepare for the July 2026 review of the United States-Mexico-Canada Agreement (USMCA), which is the name of the countries’ trade agreement that replaced NAFTA.
• The US Secretary of the Treasury to investigate exchange rates.
• The US Trade Representative to review and recommend revisions to existing trade agreements.
• The US Trade Representative to negotiate bilateral or sector-specific agreements to open markets.
• The Secretary of Commerce to review policies and regulations regarding antidumping and countervailing duty laws.
• A review of several trade issues with China, including the Economic and Trade Agreement. This is also known as the phase one agreement, under which China failed to fulfil its import commitments.

The absence of first-day tariff proposals does not mean that Trump will not make any later in his presidency. In some cases, the US president has the authority to propose them even without investigations.

For example, the International Emergency Economic Powers Act (IEEPA) of 1977 allows the president to propose tariffs that would address a severe national security threat. It requires only a consultation with Congress.

During Trump’s presidential campaign, he proposed the following tariffs:

• Baseline tariffs of 10-20% on all imports.
• Tariffs of 60% on imports from China.
• A reciprocal trade act, under which the US would match tariffs that other countries impose on its exports.

After winning office, he threatened to impose tariffs of up to 25% on imports from Canada and Mexico and up to 10% on imports from China.

Thumbnail image: Inauguration Ceremony for President Donald Trump in Washington, District of Columbia, United States – 20 January 2025 (By Chip Somodevilla/UPI/Shutterstock)