Less than a week into his second presidency, Donald Trump enacted new laws by signing 57 executive orders, according to the White House as of Friday morning, covering, among other things, trade, immigration and US foreign aid as well as demographic diversity, civil rights and the hiring of federal workers and, as The New York Times (The Times) reported on Friday, some are already being challenged by federal lawsuits. The Times also mentioned the executive orders he hasn’t signed and one making the most headlines in Canada is slapping tariffs on his northern neighbour, as well as Mexico and China, although Trump has set a deadline of Feb. 1 to sign those. It is interesting to see a take on Trump and tariffs from an American media point of view, in particular The Times, which has the second largest paid circulation in the US, and to be clear, an editorial board that is hardly a ‘friend’ to Trump. According to The Times, not having yet signed the orders for those particular tariffs is a “notable exception” and Trump’s aides have signalled his threat to impose the tariffs is partly a negotiating tool to win concessions from the three countries, adding Trump has tasked government agencies to assess the feasibility of broader tariffs and report back on the findings. The Times calls it a sign of caution, adding “Feasibility assessments are not normally the modus operandi of Trumpism” also pointing out Wall Street, which opposes most tariffs, has noticed the caution, with the S&P 500 rising on Thursday, due to Trump’s slow moves on tariffs. Trump's new administration is mostly united on big issues, such as expanding oil and gas production and an opposition to most diversity programs, reports The Times, but adds there are internal tensions about imposing tariffs and corporate executives close to Trump are wary, which extends to Wall Street. Trump may not adhere to many report cards, but the stock market is one that matters most to him and his presidency. He knows Wall Street is concerned that tariffs on Canada, Mexico and China could have negative economic effects in the US, as would retaliatory tariffs, but as The Times points out, Trump has a passion for tariffs, so some tariffs of some sort are likely, adding “The uncertainty involves the form that the tariffs will take.” During the confirmation hearing for Scott Bessent, Trump’s choice for US Treasury secretary, Bessent outlined the three main goals of tariffs: 1: Increasing production in the US: Bessent said tariffs could remedy “unfair trade practices” citing China. If countries are subsidizing their own companies or restricting foreign ones, the US could respond in kind to level the playing field. 2: Raising revenue: Trump has proposed tax cuts and tariffs could replace the lost revenue. 3: Gain leverage: “Tariffs can be used for negotiations,” said Bessent, adding Trump’s threats of tariffs on Canada and Mexico are in part an attempt to force concessions on border policy and a trade deal. The Times says the Trump administration is split into two camps when it comes to tariffs: the doves, who are wary of them and see them as negotiation tools and; the hawks who are in favour of enacting tariffs to increase domestic production and replace revenues. Trump may be using tariff threats to get a better deal for the US, but The Times says if they result in higher inflation, lower profits and trade wars, he will likely pull back. We’ll know in less than a week. Regardless, Canada must be ready with a full and strong response.
