In his patriotic inauguration speech, US President Donald Trump, who was sworn in as the 47th president on Monday, pledged to impose taxes and tariffs on foreign nations.
At the US Capitol, he declared, “I will immediately begin the overhaul of our trade system to protect American workers and families.”
“Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens,” Trump added.
Trump has attacked both allies and enemies since winning the election in November, threatening new taxes to pressure other nations to take more aggressive action on US issues.
Prior to his return to the White House, Trump threatened to put 25% tariffs on imports from Canada and Mexico and an extra 10% on goods from China unless they took more action to stop illegal immigration and the flow of fentanyl into the US.
Trump also proposed significantly higher duty rates on Chinese imports, 60 percent or more, during the campaign.
He did not, however, go ahead and announce new taxes on Monday, which are imposed on imported goods when a US buyer buys them from elsewhere.
On Monday, the White House said that all agencies would implement “emergency measures to reduce the cost of living” under the Trump administration.
It further stated that Trump will introduce his “America First Trade Policy,” emphasising that Washington would not be held to international standards on its taxation.
Trump promised “massive amounts of money” to come in from overseas sources as he reaffirmed his plan to establish a “External Revenue Service” to collect tariffs, levies, and revenues in his speech on Monday.
The Internal Revenue Service, a division of the Treasury Department that oversees and implements US tax laws, is referenced in the name.
He predicted that the American dream would soon return and flourish like never before.
Raising tariffs, according to some analysts, would eventually hurt GDP growth and raise consumer costs.
However, Trump’s backers have cited his other policy recommendations, such as deregulation and tax reduction, as ways to promote growth.
Last Thursday, Scott Bessent, Trump’s candidate for Treasury secretary, told legislators that he did not think that American companies would bear the burden of tariffs.
Additionally, Trump announced Monday that his administration would create a new “Department of Government Efficiency.”
Elon Musk and businessman Vivek Ramaswamy will head the DOGE agency, which is looking to reduce federal spending by about $1 trillion.
Although DOGE serves as an advisory body, Musk’s celebrity status and deep connections inside Trump’s inner circle provide him political leverage.