Five takeaways from Trump’s startup business

Donald Trump did not set new trade tariffs on the first day of his second term, as the markets feared, but the American president put the legal framework of the “First Trade Plan of America”.

A presidential invitation called on government agencies to correct “unfair business practices” and identify “money laundering”. Trade agreements with China, Canada, Mexico and other partners were put under review.

The message: The Trump administration was ready to use all means to restore trade to its advantage. Here are five takeaways from the start of Trump’s business plan.

A firm commitment to ‘payments sooner rather than later’

Trump mentioned tariffs only three times in his inaugural address, calming investors and trading partners who had been warned to expect “day one” tariffs. But he outlined plans to create an External Tax Service to collect taxes, indicating serious plans to increase revenue from business.

Josh Lipsky, senior director at the Atlantic Council think tank, said tariff decisions may be delayed, but not abandoned. “The president was worried about the market’s reaction on Tuesday and he didn’t want it to spoil his first day.”

The president’s invitation to “America First” provided a plan for the new program, which publishes a series of reviews about unfair trade practices, the reasons for the US trade deficits and how competitors spend the money in the wrong way and unfairly taxing US business.

Trump too he strengthened his speech and repeated threats to apply 25 percent tariffs on Canadian and Mexican imports, even though the countries have a free trade agreement. When asked about the prospect of imposing a global tax on anyone doing business with the United States, the president said: “We can do that. But we are not ready for that yet.”

“Early experience is to expect rates sooner rather than later,” Lipsky warned, adding that the administration does not yet have a full economic team and wants to establish solid foundations for law for any measures.

Focusing on neighbors first

Trump appears to be prioritizing actions on the US’s closest trading partners, saying he is preparing tariffs on Canada and Mexico to take effect as soon as March 1.

Trump had no qualms about punishing US allies during his first term, citing national security concerns to impose tariffs on steel and aluminum imports. But by going public in Canada, critics say he is showing that no country is safe from a self-proclaimed “tax man”.

Trump’s trade memo ordered a review of trade ties with Canada and Mexico on April 1 (later than Trump’s tariff warning, which the president did not elaborate on). Preparations will then begin for a full review of the USMCA trade agreement in July 2026.

Another important thing highlighted in the business invitations is Trump’s willingness to reduce the “illegal flow and flow of fentanyl”, especially from Mexico and Canada.

Most supply chains for US manufacturers, especially car manufacturersreliance on operations in all three countries and those businesses could put pressure on Trump to withdraw his threats.

On Tuesday, Canadian Prime Minister Justin Trudeau said his country was taking Trump’s proposals “seriously” and. would respond if tariffs are imposed, Mexican President Claudia Sheinbaum said it would focus on “regulations rather than language”.

Systematic change, including China

Other parts of the president’s plan include ways to make a radical change in Washington’s dealings with its trading partners.

“I don’t expect marginal changes,” said Kelly Ann Shaw, a partner at law firm Hogan Lovells and a former Trump business adviser. But instead, the analysis of all business and economic tools that produce great action.

Many initiatives initiated by the memo include investigations into the use of funds. Trump has previously accused China of devaluing the renminbi to boost the value of its exports.

The president also ordered his trade representative, Jamieson Greer, to review US trade deals, including the few made during the first Trump administration aimed at boosting exports to China.

Several parts of the memo direct various US economic officials to review US economic relations with China in general, including a review of existing tariffs on Chinese goods.

Greer was also asked to identify possible new agreements on important market access for “American workers, farmers, ranchers, service providers and other businesses”, indicating that the second administration of Trump may be open to creating new trade deals.

“This is a very big deal. It makes me think that at some point there will be a trade bill in Congress,” said Everett Eissenstat, a partner at the Washington law firm Squire Patton Boggs. Once business loans start moving they tend to be very important and the rules don’t change very often.

Trade weapons to achieve different goals

Trump has linked tariffs and other policy measures, in addition to reducing the trade deficit.

He has promised jobs on EU products unless bloc members buy more American oil and gas. Trump on Monday also suggested that China’s tariffs may depend agreement regarding the ownership of TikTok. He said he would apply tariffs on Chinese goods of up to 100 percent if Beijing fails to agree on a deal to sell at least 50 percent of the equipment to an American company.

Anahita Thoms, head of international business for law firm Baker McKenzie in Germany, said Trump is using tariff threats to increase his power.

He said: “I don’t think he is lying but he is using it as a negotiating tool. Now “every country will know what concessions they will have to make in order to have the conditions of beautiful”.

Threats risked destruction. “Tariffs will be cheap,” said Thoms, adding that Trump will not “want to do something that has a negative impact on inflation”.

‘Global’ rates and global effects

American imports from countries such as Vietnam and Mexico increased during Trump’s first term. This reflected the trend of Chinese manufacturers seeking to circumvent US tariffs by shipping to the US through third countries.

Trump’s business team noticed this. His memo asks Greer to consider other tariff changes to address “third country avoidance”.

The memo calls on officials to consider whether a “global surcharge” could be used to correct the “large and persistent” annual deficit in US trade. That suggests something like the universal tariff promised by Trump on the campaign trail could still emerge.

His threats may also encourage other countries to increase trade with them. Since December, The EU has great deals and the Mercosur group of South American countries and Mexico as we begin negotiations with Malaysia after more than a decade.

Speaking to the Financial Times, Malaysian Prime Minister Anwar Ibrahim said the global trade system will survive “first emergency” of Trump’s trade barriers.