Donald Trump returned to the White House yesterday (20 January), following his second inauguration as president of the US.
He addressed officials – including former presidents and tech billionaires – in the Capitol Rotunda, at a ceremony held inside due to the cold weather in Washington DC.
The Daily Update here summarises five key takeaways from the speech that could be significant for businesses and professionals involved in international trade.
1: America first – allies not mentioned
“During every single day of the Trump administration, I will, very simply, put America first,” said the 45th and 47th president of the US.
The claim was hardly surprising, given Trump’s ‘Make America Great Again’ motto, but the extent to which the speech focused on US interests alone was nonetheless striking. The word ‘ally’ wasn’t mentioned once, the ‘West’ was only said in reference to the ‘Wild West’, and ‘NATO’ wasn’t covered either.
In terms of other countries, Mexico was mentioned twice – in reference to the southern border and renaming the Gulf of Mexico to the ‘Gulf of America’ – and China was mentioned twice, both times in reference to the Panama Canal. While the Middle East was included in the speech – following the beginning of the ceasefire in the Israel-Palestine conflict – Russia, Ukraine, Europe and European countries, including the UK, were not spoken about.
The planet Mars, however, did get a nod, with Trump saying that the US has a “manifest destiny… to plant the stars and stripes on the planet”.
“We will be the envy of every nation. And we will not allow ourselves to be taken advantage of any longer.”
He did, however, say that he will be a “peacemaker and unifier”, particularly in reference to the Israel-Palestine ceasefire.
“We will measure our success not only by the battles we win but also by the wars that we end. And, perhaps most importantly, the wars we never get into.”
2: External Revenue Service but no tariff announcements
Most pertinently for trade, the run-up to Trump’s presidency has been dominated by speculation over whether the Republican would follow through with his pledge to introduce tariffs on all imports into the US.
He didn’t introduce tariffs on day one, but did say that he would “immediately begin the overhaul of our trade system to protect American workers and families”. This included the launch of a new External Revenue Service (ERS) to “collect all tariffs, duties and revenues”. He also cited the legacy of the 25th president, William McKinley, who “made our country very rich through tariffs and through talent”.
When pressed on his pledge to introduce tariffs at the White House following his speech, he said “we’re not ready for that yet”, indicating that he “wanted to have more talks with Chinese President Xi Jinping before deciding when to move forward with tariffs against Beijing,” according to Politico.
He did, however, threaten 25% tariffs on Mexican and Canadian goods, saying these could come in as early as 1 February, according to the FT. European and British trade with the US was not mentioned.
3: ‘Taking back’ the Panama Canal
Despite Trump’s usually strong rhetoric on China, the most significant mention of the superpower was in connection to the Panama Canal. He said that China is currently “operating” the Canal and that the US’ “gift” of the waterway to Panama was “foolish”.
“American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the US Navy,” he said.
“And above all, China is operating the Panama Canal. And we didn't give it to China, we gave it to Panama, and we're taking it back.”
It was therefore probably not a coincidence that Panama’s government launched an audit of a Hong Kong company operating ports at either end of the canal on the same day as the inauguration, reports the FT.
4: Ending the ‘Green New Deal’
In alarming news for the global fight against climate change, Trump vowed to withdraw the US from the Paris climate agreement and said that his administration will “end the Green New Deal”.
He said the US has the “largest amount of oil and gas of any country on Earth” and that he intends to “use it”.
“We will bring prices down, fill our strategic reserves up again, right to the top, and export American energy all over the world.”
He also said that, as part of ending the Biden administration’s more climate-oriented agenda, he will “revoke the electric vehicle mandate, saving our auto industry”.
5: Tackling inflation through ambitious industrialisation and innovation
Trump’s pledge to “drill baby drill” will contribute to his efforts to tackle the “inflation crisis” and “escalating energy prices”. The “liquid gold” of oil and gas will also enable the US to “be a manufacturing nation once again,” he claimed.
Trump’s speech was littered with references to what he framed as the US’ unbridled ambition and innovation. “Our nation is more ambitious than any other,” he said.
“There's no nation like our nation. Americans are explorers, builders, innovators, entrepreneurs and pioneers. The spirit of the frontier is written into our hearts. The call of the next great adventure resounds from within our souls.”
