Official announcements from the U.S. government or trade agreements

Trump Delays Tariffs on Canada, Mexico, China; Dollar Falls 1%, Stocks Rally

Jan 20, 2025, 03:47 PM

U.S. President Donald Trump, on his inauguration day, did not impose the new tariffs he had previously threatened against Canada, Mexico, and China. Instead, Trump issued a broad memorandum directing federal agencies to study trade policies and evaluate U.S. trade relationships with these countries. This decision led to a significant drop in the U.S. dollar, with the dollar index tumbling 1% and the euro advancing 1.5% to $1.0430. The move was seen as a more measured approach to Trump's trade agenda, with the memorandum providing a blueprint for potential future executive actions on trade. The absence of immediate tariffs was welcomed by markets, leading to a rally in global stocks and a sigh of relief among Canadian business leaders and politicians who had been bracing for potential trade disruptions.