No day-one tariffs from Trump, but he says Canada, Mexico may get duties

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By David Lawder, Andrea Shalal and Jarrett Renshaw

WASHINGTON- President Donald Trump did not immediately impose tariffs on Monday as previously promised but said he was thinking about imposing 25 percent duties on imports from Canada and Mexico on Feb. 1 over illegal immigrants and fentanyl crossing into the US

As he was sworn into office, Trump stopped well short of a swift tariff action against the two US neighbors, but directed federal agencies to investigate persistent US trade deficits and unfair trade practices and alleged currency manipulation by other countries.

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In a presidential memo, Trump directed the Commerce and Treasury departments and the US Trade Representative to probe the economic and national security risks of large trade deficits “and recommend appropriate measures, such as a global supplemental tariff, or other policies, to remedy such deficits.”

Investors and foreign capitals had been bracing for a day-one tariff action that could upend longstanding trade agreements, but Trump’s trade memo essentially called for more research that could back future tariff actions.

The reprieve prompted a rally in global stocks and sent other currencies higher against the dollar. US financial markets were closed on Monday but will reopen on Tuesday.

Asked by reporters at the White House whether he would impose a universal tariff on all imports into the United States, Trump said: “We may. But we’re not ready for that yet.”

Asked about the Canada and Mexico tariffs, he said he was thinking about 25 percent because the two countries were allegedly allowing “vast numbers of people” and fentanyl into the US

Trump also said he wanted to reverse the US trade deficit with the European Union, either with tariffs or more energy exports.

Tariffs were the theme throughout inauguration day, with Trump saying such measures would generate “massive amounts” of federal income as his administration works to rebuild American industry. He said they would be collected by a new agency called the External Revenue Service.

“Tariffs are going to make us rich as hell,” Trump later told supporters at Capital One Arena in Washington. “It’s going to bring our country’s businesses back that left us.” —Reuters

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