Trump vows 'overhaul' of US trade policy to promote American interests

“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” he added.

In a White House memo to Congress on day one actions, the new administration said the president would soon announce the “America First Trade Policy.”

On Monday evening while signing executive orders, Trump gave some indication of what that might look like. He threatened Canada and Mexico with 25% tariffs that could come into force as early as Feb. 1.

Additionally, the White House memo said Trump would withdraw from the Paris Climate Accord, which he also did in his first term. President Biden rejoined the deal when he assumed office.

This could have implications down the line for decarbonization in steel, automotive emissions, and trade policy.

External Revenue Service

Trump also said the US will be establishing the “External Revenue Service to collect all tariffs, duties, and revenues.”

“It will be massive amounts of money pouring into our treasury coming from foreign sources,” Trump declared. “The American dream will soon be back and thriving like never before to restore competence and effectiveness to our federal government.”

Panama Canal

One concrete element affecting trade mentioned in the speech was the Panama Canal. This has been an issue Trump has touched on recently, and now as president he said he means action.

He declared that the canal has “foolishly been given to the country of Panama.”

President Jimmy Carter, who passed away earlier this month, signed sovereignty of the canal over to Panama in 1977.  The “Panama Canal Zone” ceased to exist on Oct. 1, 1979. Finally, the canal itself was handed over to Panama on Dec. 31, 1999. 

Trump noted the US spent more money than it had ever spent before on that project and lost 38,000 lives in its construction.

“We have been treated very badly from this foolish gift that should have never been made, and Panama’s promise to us has been broken,” Trump said.

He claimed American ships are being severely overcharged and not treated fairly, including the US Navy.

“And, above all, China is operating the Panama Canal. And we didn’t give it to China. We gave it to Panama,” Trump said. “And we’re taking it back.”

He did not discuss how such an action could take place.

The ‘final frontier’

Trump wasn’t content to limit his horizon to planet Earth. Perhaps in a nod to Tesla and SpaceX boss Elon Musk, who boosted Trump’s campaign and will head the Department of Government Efficiency (DOGE), Trump looked to the stars.

While trade between countries has so far been limited to the land, air, and sea, Trump upped the ante.

He said the US “will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars.”

To this Musk’s reaction was an emphatic, “Yes!”