Will Trump Go Through With Tariffs This Time? | Global News Avenue

Trump delayed imposing tariffs on Canada and Mexico on his first day in office, leaving financial markets wondering whether the new February 1 deadline was real.

On Monday night, Trump signed a series of executive orders that reignited speculation about his tariff plans. obviously missed tariff. During the campaign, he promised to impose 25% tariffs on goods from Canada and Mexico on his first day as president. Instead, Trump ordered a study of trade policy and set a new deadline for his tariff plan.

“I think we’ll do it on February 1,” he told reporters in the Oval Office.

The delay left forecasters speculating about whether Trump might impose taxes on goods entering the United States, and if so, how much — a huge number. important questions for the trajectory of the economy.

What does the delay mean for the economy?

At various times during the campaign, Trump promised to impose taxes on imports from Canada, Mexico and China, and to impose broad tariffs of up to 20% on all foreign imports, in the name of encouraging companies to make products in the United States rather than overseas. . Many economists believe that higher tariffs will stoke inflation because U.S. consumers will see higher prices for everyday products.

Several economists working at major banks expressed relief at the delay.

Sal Gautieri, senior economist at BMO Capital Markets, wrote in a commentary: “The lack of tariff announcements on the first day in office suggests that the administration may be more cautious about tariffs given their potential side effects on the economy. Thoughtful approach.”

One economist said Trump’s remarks on trade during Monday’s inauguration were softer than expected.

Alec Phillips, chief U.S. political economist at Goldman Sachs, wrote in a commentary: “Trump’s rhetoric on China has been significantly less tough than recent rhetoric during the presidential campaign and even after the election.” “While we view ‘universal tariffs’ as a clear risk, his comments suggest that it is currently a lower priority than we expected.”

However, the postponement does not mean that tariffs are not considered, as tariffs are an important part of Trump’s economic platform. Goldman Sachs economists still see a 70% chance of 20% tariffs on China, a 20% chance of 25% tariffs on Canada and Mexico, and a 55% chance of tariffs on European cars.