What more have we Learned About Trump's Trade Tariffs?
Donald Trump threatened a range of tariffs on the campaign trail – but just how many will the 47th US President deliver now he has returned to office?
Trump has previously called tariffs "the most beautiful word in the dictionary" and "the greatest thing ever invented".
In a bid to grow the US economy and protect jobs, he has pledged to tax all goods coming into the country, with imports from China expected to be targeted most heavily.
Early action
Trump had threatened to immediately impose tariffs on Mexico and Canada following his return to the White Office.
But, after pledging a "golden age" for the US and a "new era of national success" during his inauguration speech, Trump stopped short of confirming import taxes on day one. Instead, it appears 25% import duties will hit Mexico and Canada from next month.
“I think we’ll do it February 1st," Trump told a reporter in the Oval Office.
Elaborating on his reasons for imposing tariffs, Trump highlighted the fentanyl crisis, which has led to tens of thousands of deaths in recent years.
He added: "We're thinking in terms of 25% on Mexico and Canada, because they're allowing vast numbers of people, Canada's a very bad abuser also, vast numbers of people to come in, and fentanyl to come in."
Meanwhile, Trump has pledged a 10% tax on global imports and 60% on Chinese goods.
However, recent developments surrounding TikTok, the hugely popular short-form video sharing platform, present an added complication to his treatment of China.
The TikTok effect
The US' proposed ban of TikTok relates to concerns about its links to the Chinese government and has captured considerable attention in the global tech industry.
Owned by Chinese technology company ByteDance, TikTok 'went dark' and stopped working in the US over the weekend after a new law enacted by the Biden administration came into effect.
But, in a significant turn of events, Trump has extended a lifeline to the platform by signing an executive order granting an additional 75 days to comply with new regulations requiring the sale of its US operations.
"Every rich person has called me about TikTok," he said, while signing a slew of executive orders in the Oval Office on Monday.
"I have a warm spot in my heart for TikTok because I won the youth by 34 points. And there are those that say TikTok had something to do with that."
In response to the order, TikTok said: "We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over seven million small businesses to thrive."
Potential economic leverage
Integrating economic strategy with political measures, President Trump has highlighted potential financial implications tied to TikTok’s operational status. He suggested the US “should be entitled to get half of TikTok” if he approves a deal for its sale on national security grounds.
He also hinted that future trade tariffs on China could hinge on the outcome of negotiations over TikTok, indicating a closely watched period of geopolitical manoeuvring.
Despite threatening considerable tariffs on Canada and Mexico, Trump's broader tariff strategy appears momentarily paused as stakeholders await the resolution of the TikTok deal.
It represents an economic and political chess game that continues to keep investors and international observers on edge, especially during significant gatherings like the World Economic Forum in Davos this week.
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