President Trump’s second term has begun with notable policy shifts and reversals that have left many observers struggling to keep pace with the rapid changes. In the first month alone, the administration has made several bold moves regarding federal policy and international trade, though some initiatives were quickly modified or delayed after initial announcements.
The administration’s early days were marked by an unprecedented Office of Management and Budget memorandum that attempted to freeze all federal financial assistance and grants. This sweeping action, while intended to reassess federal spending priorities, created confusion among government branches and was swiftly rescinded, though the administration maintains its commitment to reviewing funding allocations.
Trade policy has emerged as a central focus, with Trump following through on campaign promises to utilize tariffs as a diplomatic and economic tool. The strategy showed early success when Colombia agreed to accept returned illegal aliens under threat of tariffs.
Subsequently, on January 31, 2025, the administration announced a 25 percent tariff on Canada and Mexico, citing concerns over fentanyl trafficking. Both nations quickly responded with concessions – Mexico committing troops to border security and Canada agreeing to
collaborate on drug enforcement – leading to a minimum one-month delay in tariff implementation.
The appointment of key economic officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and USTR nominee Jamieson Greer, suggests a possible return to the more methodical trade approach characteristic of Trump’s first term. This team faces the challenge of maintaining pressure on China’s predatory practices while ensuring tariff policies effectively promote domestic manufacturing without inadvertently benefiting Chinese competitors.
A particular concern involves ensuring fair tariff enforcement, as highlighted by cases like Milwaukee Tool, which the Trade Alliance to Promote Prosperity identified in 2024 as a Chinese company potentially avoiding proper tariff payments, thereby gaining unfair advantages over American competitors.
Moving forward, the administration faces the complex task of wielding tariff authority strategically, including the careful use of exemptions to strengthen American businesses’ competitive position. Just as tariff threats have proven effective in international negotiations, targeted exemptions could serve as tools to encourage domestic investment and manufacturing growth.
The challenge ahead lies in transitioning from these initial dramatic policy moves to a more deliberate approach that advances the president’s long-term objectives while supporting American businesses’ immediate needs. Success will require balancing aggressive trade strategies with careful consideration of their economic impacts, particularly in supporting domestic manufacturing and job creation.
For the tariff system to succeed, it must effectively address inequities that could advantage foreign companies over American manufacturers. This includes ensuring Chinese firms cannot circumvent tariff obligations while their American counterparts face full compliance costs. The administration’s ability to fine-tune these policies will be crucial in achieving its stated goals of increasing domestic production and employment.
The early weeks of Trump’s second term have demonstrated both the potential and pitfalls of aggressive policy implementation. As the administration moves forward, the focus must shift toward detailed policy execution and targeted negotiations that serve both immediate and long-term American economic interests.