Trump plans trade system overhaul to protect American workers, families

 Trump Vows Tariffs on Foreign Nations, Pledges Economic Overhaul in Inaugural Address

U.S. President Donald Trump reaffirmed his commitment to protecting American workers and overhauling the trade system, vowing to impose tariffs and taxes on foreign nations in his inaugural address after being sworn in as the 47th President on Monday.

“I will immediately begin the overhaul of our trade system to protect American workers and families,” Trump declared at the U.S. Capitol.

He further emphasized his administration’s nationalist economic approach, stating:

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

Tougher Stance on Trade

Since his election victory in November, Trump has criticized both allies and adversaries, proposing tariffs to pressure other nations into addressing U.S. economic and security concerns.

Before returning to the White House, Trump pledged to impose:

• 25% tariffs on Canadian and Mexican imports if they failed to take stronger measures on illegal immigration.

• 10% tariffs on Chinese goods to curb the flow of fentanyl into the United States.

• Potential 60% or higher tariffs on Chinese imports, a proposal floated during his campaign.

Although Trump did not announce new tariffs during his speech, he reiterated his stance on protecting American industries from foreign competition.

‘America First’ Trade Policy

The White House issued a statement on Monday outlining Trump’s “America First Trade Policy,” affirming that his administration would prioritize reducing the cost of living and ensuring the U.S. is not subject to foreign influence in tax matters.

Trump also introduced plans to establish an External Revenue Service (ERS) to collect tariffs, duties, and other revenues, which he claimed would bring “massive amounts of money” into the country.

The ERS is modeled after the Internal Revenue Service (IRS), the agency responsible for enforcing U.S. tax laws.

“The American Dream will soon be back and thriving like never before,” Trump proclaimed.

Economic Impact and Policy Debates

Economic analysts have raised concerns that higher tariffs could lead to increased consumer prices and potentially slow GDP growth over time. However, Trump’s supporters argue that his broader economic policies, including tax cuts and deregulation, will stimulate growth and counterbalance any negative effects of tariffs.

During his Senate confirmation hearing, Trump’s Treasury Secretary nominee, Scott Bessent, rejected claims that tariffs would significantly burden U.S. consumers and businesses.

Government Restructuring: The ‘Department of Government Efficiency’

Trump also unveiled a new initiative to streamline federal operations, announcing the creation of the Department of Government Efficiency (DOGE).

This advisory body, led by billionaire Elon Musk and entrepreneur Vivek Ramaswamy, is tasked with identifying $1 trillion in federal spending cuts.

While DOGE will serve in a consultative role, Musk’s influence in Trump’s inner circle adds significant political weight to the initiative.

Looking Ahead

As Trump embarks on his second, non-consecutive term, his administration’s focus on trade, economic nationalism, and government efficiency is expected to define his policy agenda in the coming years.