Trump Vows to Launch Tariffs War on Other Countries

The Trump administration will evaluate trade policies and economic relationships with China and North American neighbours.

Tue Jan 21 2025
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WASHINGTON: US President Donald Trump promised tariffs and taxes on other countries to raise US revenue and avoid extra taxes on Americans.

In his inaugural speech after being sworn in as the 47th president, Trump said, “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”

He also said his administration would create an “external revenue service” to collect tariffs, duties and revenue.

“I will immediately begin the overhaul of our trade system to protect American workers and families,” he said at the US Capitol.

Trump’s focus on tariffs in the speech comes as the incoming administration plans to publish a memo directing federal agencies to evaluate trade policies and economic relationships with China and North American neighbours.

Since his election victory in November, Trump has taken aim at allies and adversaries alike, raising the prospect of fresh levies to push other countries towards tougher action on US concerns.

Before his White House return, Trump vowed to impose 25 percent tariffs on Canadian and Mexican imports, and an additional 10 percent on Chinese goods, if they did not do more about illegal immigration and the flow of fentanyl into the United States.

On the campaign trail, Trump also floated the idea of much steeper tariff rates — 60 percent or more — on Chinese imports.

But he stopped short Monday of unveiling new tariffs, which are applied on imported goods when a US buyer purchases them from abroad.

Emergency measures

The White House said Monday that under the Trump administration, all agencies would adopt “emergency measures to reduce the cost of living.”

It added that Trump would unveil his “America First Trade Policy,” stressing also that Washington would not be beholden to foreign organisations for its tax policy.

In his speech Monday, Trump reiterated his plan to set up an “External Revenue Service” to collect tariffs, duties and revenues, promising “massive amounts of money” pouring in from foreign sources.

trump08
(L-R) US Associate Supreme Court Justice Samuel Alito, Jr., Associate Supreme Court Justice Clarence Thomas, Supreme Court Associate Justice Brett Kavanaugh and Supreme Court Chief Justice John Roberts attend the inauguration ceremony as Donald Trump speaks after being sworn in as the 47th US President in the US Capitol Rotunda in Washington, DC, on January 20, 2025. (Photo by AFP)

The name is a play on the Internal Revenue Service, a bureau under the Treasury Department that administers and enforces US tax laws.

“The American dream will soon be back and thriving like never before,” he said.

Some analysts have warned that tariff hikes would bring higher consumer prices and weigh on GDP growth over time.

But Trump’s supporters have pointed to his other policy proposals like tax cuts and deregulation as a means to spur growth.

ALSO READ: Trump Says US to Take Back Panama Canal

Trump’s Treasury Secretary nominee Scott Bessent told lawmakers last Thursday that he disagreed the cost of tariffs would be borne domestically.

On Monday, Trump also said his government would establish a new “Department of Government Efficiency.”

The office dubbed DOGE, to be led by Elon Musk and businessman Vivek Ramaswamy, is eyeing some $1 trillion in cuts to federal spending.

While DOGE has an advisory role, Musk’s star power and strong influence in Trump’s inner circle bring political clout.

 

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