WASHINGTON: President Donald Trump did not immediately impose tariffs on Monday as previously promised but directed federal agencies to “investigate and remedy” persistent U.S. trade deficits and unfair trade practices and currency manipulation by other countries.

Trump, sworn in on Monday, said in his inaugural address the U.S. would collect “massive amounts” of income from foreign trade duties as his administration works to rebuild American industry.

“Tariffs are going to make us rich as hell,” Trump later told supporters at Capital One Arena in Washington. “It’s going to bring our country’s businesses back that left us.”

His first day reprieve signals a possibly more deliberative approach to imposing tariffs, an issue that has shaken global policymakers and investors, and prompted a relief rally in global stocks and key foreign currencies against the dollar.

While Trump mentioned no specific tariff plans in his inaugural address, he and members of his cabinet said they were coming, to be collected by a new agency called the External Revenue Service.

Trump added that his policies would make America “a manufacturing nation once again.”

In a broad presidential trade memo draft seen by Reuters, Trump also directed federal agencies to assess China’s performance under the “Phase 1” trade deal he signed with Beijing in 2020 to end a nearly two-year tariff war.

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The deal required China to increase purchases of U.S. exports by $200 billion over two years, but Beijing failed to meet the targets as the COVID-19 pandemic hit.

“China’s adherence to this agreement will now be assessed, to determine whether enforcement or changes are required,” the memo reads.

Day one reprieve

During his election campaign, Trump vowed to impose steep tariffs of 10% to 20% on global imports into the U.S. and 60% on goods from China to help reduce a trade deficit that now tops $1 trillion annually.

He also vowed to impose 25% duties on goods from Canada and Mexico on his first day in office, if they failed to clamp down on the flow of illicit drugs and migrants entering the U.S. illegally.

Such duties would tear up longstanding trade agreements, including the U.S.-Mexico Canada Agreement (USMCA) upend supply chains and raise costs, according to trade experts.

The memo directs agencies to ensure that USMCA and other trade agreements “prioritize American workers, farmers and businesses,” signaling plans for a 2026 renegotiation.

Some industry groups and trade lawyers in Washington had expected Trump to invoke the International Emergency Economic Powers Act, a law with sweeping powers to control imports, to impose broad tariffs.

But Trump will coordinate closely with Congress on tariff measures, a senior administration official said, downplaying differences of opinion within his fledgling cabinet on how quickly to enact Trump’s promised tariffs.

The source said that Trump’s Commerce secretary nominee, Howard Lutnick and his nominee for Treasury secretary, Scott Bessent, would push Trump’s trade agenda forward soon, but gave no specific timetable.

Relief rally

The U.S. dollar slumped broadly on the news against a basket of major trading partners’ currencies, with particularly large upswings in the euro, Canadian dollar, Mexican peso and Chinese yuan. MSCI’s measure of global stock markets rose. U.S. financial markets are closed for the Martin Luther King Jr. Day holiday.

Canadian Finance Minister Dominic LeBlanc told reporters in Ottawa that it would be a positive step for the U.S. to study bilateral trade ties rather than impose tariffs. Industry groups also expressed relief at the reported lack of immediate duties.

“U.S. businesses would welcome a deliberative approach that identifies unfair trade practices and helps Americans succeed in the global economy,” said Jake Colvin, president of the National Foreign Trade Council, which represents a broad swath of large American companies on trade matters.Trade analysts said they still expect Trump to press ahead with a global tariff early in his administration.

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“The universal tariff was a core part of the economic plan he ran on and I think he’s going to do what he said he would,” said Kelly Ann Shaw, a former White House trade adviser during Trump’s first term.

“This is an idea he’s supported for a long time,” Shaw, now with the Hogan Lovells law firm, said in an interview last week.