 Trump presidency ushers in new era of uncertainty |
Source |
American Shipper |
Post Date |
01/22/2025 |
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The start of the second Trump presidency on Monday is expected to bring a raft of potential changes to the container industry, aimed mainly at reining in the power of China.
At his signing-in ceremony on Monday, Trump confirmed that he planned to impose 25% tariffs on Mexico and Canada starting from February 1, in the first of what could become a series of new trade arrangements. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens? he said in the inauguration address.
There was no immediate news on Chinese tariffs, however, after the president had threatened levies as high as 60% during his presidential campaign. But among the utive orders signed on Monday, the President ordered a wide-ranging investigation into US trade practices and deficits, and a probe into whether China was failing to comply with the US-China Phase 1 trade deal signed in 2020.
President vows to take back Panama Canal
Trump mentioned China only twice in his inauguration speech, both times in relation to the Panama Canal. Accusing Panama of breaking the terms of the Canal transfer in 1999 and allowing China to impose control, Trump reiterated his promise to take back the waterway.
American ships are being severely overged and not treated fairly in any way, shape or form, and that includes the United States Navy.
And above all, China is operating the Panama Canal. And we didnt give it to China, we gave it to Panama, and were taking it back, he said. Such a move would be in breach of international conventions.
Trump has so far refused to rule out military intervention, though commentators have speculated that the actions are most likely aimed at extracting better economic terms from the Canal? administrators.
More than 70% of vessel transits through the Canal are from or destined for a US port.
Trump has now signed more than 100 utive orders, some of which are expected to be challenged in court. Critics have warned the cost of higher tariffs are almost certain to be passed on to US consumers, fuelling the kind of inflationary pressure that Trump has pledged to reduce.
Other elements that might also indirectly affect the container industry include the decision to pull the US out of the Paris climate agreement, and ease regulation of the oil and gas industries.
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