No day-one tariffs from Trump, but he says Canada, Mexico may get duties Feb 1

By David Lawder, Andrea Shalal and Jarrett Renshaw

WASHINGTON (Reuters) -President Donald Trump did not instantly enforce tariffs connected Monday arsenic antecedently promised but said helium was reasoning astir imposing 25% duties connected imports from Canada and Mexico connected Feb. 1 implicit amerciable immigrants and fentanyl crossing into the U.S.

As helium was sworn into office, Trump stopped good abbreviated of a swift tariff enactment against the 2 U.S. neighbors, but directed national agencies to analyse persistent U.S. commercialized deficits and unfair commercialized practices and alleged currency manipulation by different countries.

In a statesmanlike memo, Trump directed the Commerce and Treasury departments and the U.S. Trade Representative to probe the economical and nationalist information risks of ample commercialized deficits "and urge due measures, specified arsenic a planetary supplemental tariff, oregon different policies, to remedy specified deficits."

Investors and overseas capitals had been bracing for a day-one tariff enactment that could upend longstanding commercialized agreements, but Trump's commercialized memo fundamentally called for much probe that could backmost aboriginal tariff actions.

The reprieve prompted a rally successful planetary stocks and sent different currencies higher against the dollar. U.S. fiscal markets were closed connected Monday but volition reopen connected Tuesday.

Asked by reporters astatine the White House whether helium would enforce a cosmopolitan tariff connected each imports into the United States, Trump said: "We may. But we're not acceptable for that yet."

Asked astir the Canada and Mexico tariffs, helium said helium was reasoning astir 25% due to the fact that the 2 countries were allegedly allowing "vast numbers of people" and fentanyl into the U.S.

Trump besides said helium wanted to reverse the U.S. commercialized shortage with the European Union, either with tariffs oregon much vigor exports.

Tariffs were the taxable passim inauguration day, with Trump saying specified measures would make "massive amounts" of national income arsenic his medication works to rebuild American industry. He said they would beryllium collected by a caller bureau called the External Revenue Service.

"Tariffs are going to marque america affluent arsenic hell," Trump aboriginal told supporters astatine Capital One (NYSE:) Arena successful Washington. "It's going to bring our country's businesses backmost that near us."

CHINA ACTIONS

Trump's commercialized memo called for the USTR to measure China's show nether the "Phase 1" commercialized woody helium signed with Beijing successful 2020 to extremity a astir two-year tariff war.

The woody required China to summation purchases of U.S. exports by $200 cardinal implicit 2 years, but Beijing failed to conscionable the targets arsenic the COVID-19 pandemic hit.

USTR volition find China's compliance to urge due actions "up to and including the imposition of tariffs oregon different measures arsenic needed," it said.

The memo besides asks USTR to urge imaginable changes to China's Most Favored Nation trading presumption and to analyse different Chinese economical practices that whitethorn beryllium "unreasonable oregon discriminatory and that whitethorn load oregon restrict U.S. commerce" -- connection associated with Section 301 investigations specified arsenic those utilized to enforce tariffs connected Chinese goods during Trump's archetypal word and continued by erstwhile president Joe Biden.

The caller president besides signed an enforcement bid delaying the enforcement of a prohibition connected fashionable short-video app TikTok, but said helium mightiness enforce tariffs connected China if Beijing did not o.k. a imaginable U.S. woody with TikTok.

During his predetermination campaign, Trump vowed to enforce steep tariffs of 10% to 20% connected planetary imports into the U.S. and 60% connected goods from China to assistance trim a commercialized shortage that present tops $1 trillion annually.

Such duties would teardrop up longstanding commercialized agreements, including the U.S.-Mexico Canada Agreement (USMCA) upend proviso chains and rise costs, according to commercialized experts.

The memo calls connected USTR to motorboat nationalist consultations to hole for a 2026 reappraisal of USMCA, and measure its interaction connected American workers, farmers, ranchers, and work providers.

Some manufacture groups and commercialized lawyers successful Washington had expected Trump to invoke the International Emergency Economic Powers Act, a instrumentality with sweeping powers to power imports, to enforce wide tariffs.

But Trump volition coordinate intimately with Congress connected tariff measures, a elder medication authoritative said, downplaying differences of sentiment wrong his fledgling furniture connected however rapidly to enact Trump's promised tariffs.

The root said that Trump's Commerce caput nominee, Howard Lutnick and his nominee for Treasury secretary, Scott Bessent, would propulsion Trump's commercialized docket guardant soon, but gave nary circumstantial timetable.

RELIEF RALLY

The U.S. dollar slumped broadly connected the quality against a handbasket of large trading partners' currencies, with peculiarly ample upswings successful the euro, Canadian dollar, Mexican peso and . MSCI's measurement of planetary banal markets rose. U.S. fiscal markets are closed for the Martin Luther King Jr. Day holiday.

Canadian Finance Minister Dominic LeBlanc told reporters successful Ottawa that it would beryllium a affirmative measurement for the U.S. to survey bilateral commercialized ties alternatively than enforce tariffs. Industry groups besides expressed alleviation astatine the reported deficiency of contiguous duties.

"U.S. businesses would invited a deliberative attack that identifies unfair commercialized practices and helps Americans win successful the planetary economy," said Jake Colvin, president of the National Foreign Trade Council, which represents a wide swath of ample American companies connected commercialized matters.

Trade analysts said they inactive expect Trump to property up with a planetary tariff aboriginal successful his administration.