President Donald Trump is set to unveil his trade policy for a potential second term through an executive action on Monday. The action, described as a 'placeholder,' will not immediately impose new global tariffs as previously promised by Trump.
Trump's economic team has been actively discussing the implementation of significant tariffs on both allies and adversaries, a key campaign promise. The administration is still deliberating on the best approach to fulfill these pledges.
In his inaugural address, Trump reiterated his commitment to revamping the trade system to safeguard American workers and families. He emphasized a shift towards imposing tariffs on foreign countries to benefit U.S. citizens.
As part of his plan, Trump mentioned the creation of a new government office, the 'External Revenue Service,' which would be responsible for collecting tariff revenue. However, the specifics of how this will be executed are still being debated within the economic team.
Various proposals are being considered, including implementing smaller tariffs that would gradually increase over time or delaying the imposition of tariffs to allow for negotiation with counterparties. The legal basis for these tariffs is also a point of contention, with the possibility of using emergency powers to regulate imports being weighed.
Despite internal divisions on the best course of action, Trump remains steadfast in his intention to bring about significant changes in tariff policy during a potential second term.
