On his first day back in office, President Donald Trump refrained from immediately imposing new tariffs, despite campaign promises to do so. However, he announced that tariffs would be implemented starting February 1, claiming they will bring "massive amounts of money" into the US Treasury.

Trump outlined plans to create an External Revenue Service to collect tariffs, duties, and other revenues. The president stated his intention to shift from taxing US citizens to taxing foreign countries, aiming to "enrich our citizens" through these trade policies.

Specific tariff plans mentioned include a 25% tariff on goods from Mexico and Canada, citing concerns over illegal immigration and drug trafficking. Trump also reiterated potential for a 10% tariff on all goods imported from China, on top of existing tariffs.

The president suggested that these tariffs would incentivize companies to relocate manufacturing to the US to avoid the levies. When asked about the possibility of a universal tariff on all countries, Trump indicated it was a consideration for the future.

Trade experts have warned that broad tariffs could lead to increased prices for US consumers on a wide range of goods, potentially sparking inflation. Some economists predict these policies could cost the average American household an additional $1,500 annually.

Trump dismissed concerns about negative economic impacts, stating his policies would make life more affordable and prosperous for Americans. He also touched on inflation concerns, vowing to combat rising prices by expanding domestic energy supply and ramping up US manufacturing.

The proposed tariffs could face legal challenges, particularly regarding potential violations of the US-Mexico-Canada trade agreement negotiated during Trump's first term. Both Canada and Mexico have indicated they are prepared to retaliate if punitive tariffs are imposed.

As the February 1 deadline approaches, businesses, consumers, and international partners will be closely monitoring developments in US trade policy and preparing for potential economic repercussions.