Well, the first day of “Trump 2.0” could hardly be categorised as the President’s “first day on the job” but rather the first day of a new version of the same job with a significant amount of governing going on, some predicted, some a version of previous predictions but all done without the need of Congressional approval. 

He managed to sign 1500 “Executive Orders” implementing actions empowered by various legislation and released many of those jailed after the post – election riots in his favour in 2021.

His inaugural speech comprised 2913 words and traversed many of his promises to make America “Great Again” in a new “golden age” and unsurprisingly touched on many of his pre – election promises. 

However, it was not without at least one fact – checking error where he claimed that the US had “spilt the atom” which was first done by a New Zealand Nobel Prize winner in 1917 and done again by English scientists in 1932.

Getting back to the highlights of what was done on the first day of Trump 2.0 coming from a mix of announcements and Executive Orders.

•             The suggestion was that new 25% tariffs on goods from Canada and Mexico were likely to commence on 1 February 2025 even though those countries and the US are parties to the United States, Mexico and Canada Trade Agreement.

•             There were general references to wider global tariffs on imports from other countries without details of what may happen and when.  As previously mentioned, Australia has a significant trade deficit with the US (and a Free Trade Agreement and security Treaties) so hopefully will be spared such tariffs.

•             The US withdrew from the World Health Organisation, the Paris Climate Treaty and the global corporate minimum tax deal.  Which makes NATO members nervous and feeling the pressure to increase defence spending.

•             President Trump authorised the process to permit drilling in parts of the United States previously excluded from such drilling on environmental grounds based on a “national energy emergency”.  The “drill, baby drill” outcome promised during the election campaign.

•             The US Trade Representative is to review existing FTA to determine if they have appropriate levels of reciprocal and mutually advantageous concessions.  That could hurt Australian interests.

•             The impact of the US $800 duty free “de minimis” exemptions on tariff revenues and public health will be assessed, with potential modifications to protect US interest.

•             Review of the section 232 tariffs on steel and aluminium including exclusions, exemptions and other import adjustments on steel and aluminium.  That could also hurt Australian interests/

•             Policies regarding Antidumping and Countervailing Duties (AD/CVD) laws are being reviewed to ensure compliance and address transnational subsidies.

•             Examining extraterritorial taxes, World Trade Organization, and Federal Procurement agreements in connection to Buy America, export control authorities and national security, and recent rule from the BIS covering the Information and Communication Technology and Services on Connected Vehicles.

Ultimately, while President Trump did not do everything exactly as promised, the thrust of the “America First” mantra was present with the likelihood of further moves.

In that context the President is famously “transactional” and may seek to re – negotiate existing agreements lest they are terminated. 

For example, the US makes Australia pay more for its submarines it is buying from the US as part of a deal to retain the full ANZUS Treaty.

The threat to take back the Panama Canal seems to have driven some change with the Panamanian government announcing a review of the Chinese ownership of the Canal which the President believes is being run to the detriment of US interests.

We can only remain engaged and watch carefully as matters develop.