President Trump issued a comprehensive trade policy memorandum on his first day in office, directing federal agencies to conduct wide-ranging reviews of America’s trade relationships and security measures.
The memorandum, which emphasizes an “America First” approach, calls for investigation into persistent trade deficits and potential remedies, including the possibility of implementing a “global supplemental tariff.” Of particular significance, the directive orders the creation of an External Revenue Service (ERS) to handle tariffs and trade-related revenues.
The National Retail Federation (NRF) responded positively to what is being viewed as a measured approach, with Executive Vice President David French noting, “We are pleased with President Trump’s thoughtful decision to initiate a review of current trade policies before implementing significant new tariffs.”
While Trump stopped short of “day one” action on tariffs, he signaled his intention to implement previously threatened tariffs of up to 25% on Mexico and Canada by February 1. “We’re thinking in terms of 25% on Mexico and Canada, because they’re allowing vast numbers of people” across the border, Trump told reporters Monday night in the Oval Office. “I think we’ll do it Feb. 1.”
Trump’s previous campaign threats suggested up to 60% on Chinese goods and 10-20% from other countries.
A key focus of the memorandum targets U.S.-China trade relations, with specific directives to review existing agreements and investigate potential unfair practices. The administration has set an April 1, 2025 deadline for most reports, suggesting rapid policy changes could emerge by mid-2025.
The NRF cautioned that “tariffs are taxes paid by Americans” and advocated for strategic implementation targeting only the most critical goods, reflecting growing concern within the shipping and retail sectors about the potential impact of broad tariff measures on supply chains and consumer prices.
For the maritime industry, particularly significant are the memorandum’s provisions regarding supply chain security, trade deficit reduction, and the comprehensive review of trade relationships with major partners. These measures could substantially impact shipping routes, freight rates, and ports in the coming years.
Uncertainty about the timing and scope of the tariffs is likely to create significant challenges for supply chains and threatens to drive freight rates higher, according to the ocean and air freight intelligence platform Xeneta.
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