“It’s my first day back”— What President Trump did when inaugurated again

A version of this article was published in January 2025 in The DCN.

The first day of ‘Trump 2.0’ marked a bold re-entry into power. While his inauguration speech reaffirmed his commitment to promises to make America great again, the day itself was filled with significant and controversial decisions that could shape the course of his second presidential term.

There is a famous episode of The Simpsons when Homer becomes captain of a nuclear-powered submarine early in naval reserve training and almost initiates a nuclear war.  His excuse to the other navies circling his submarine (including a Penguin battleship) is to broadcast “It’s my first day” to each of the other navies in their languages (including Penguinese). Each navy finds this hilarious and natural and withdraws its fleet — crisis averted.

Well, the first day of Trump 2.0 could hardly be categorised as the President’s first day on the job. Rather, it’s the first day of a new version of the same job with a significant amount of governing going on — some predicted and some a version of previous predictions — all done without the need of Congressional approval. He signed 1,500 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 2,913 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 split the atom — an achievement by a New Zealand Nobel Prize winner in 1917 and done again by English scientists in 1932.

Here are some highlights of what was done — a mix of announcements and Executive Orders — on the first day of Trump 2.0, what was promised and what has been added to the agenda.

• The suggestion 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 10% 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. However the US has today announced an additional 10% tariff on all imports from China as China is not stopping fentanyl being sent to Mexico and Canada and then to the US.
• 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 feel the pressure to increase defence spending.
• President Trump authorised the process to permit drilling in parts of the US previously excluded from such drilling on environmental grounds based on a ‘national energy emergency’, the “drill, baby drill” outcome promised during the election campaign.
• He declared a national emergency at the US-Mexico border and ended birthright citizenship, increasing the likelihood of massive compulsory deportations to Mexico which would be consistent with comments by his nominated ‘Border Tzar’ on the day before the inauguration.
• He provided TikTok with a 75-day reprieve from a national ban, so his administration has time to decide what to do with the Chinese-influenced app. That may include compelling a transfer of 50% of the app ownership to the US.
• He formally created the Department of Government Efficiency to be led by Elon Musk who initially suggested he could cut $2 trillion from the federal government. Reports predict that there could be retrenchments for 1,000 federal employees. Mr Musk has also secured an invaluable White House address.
• The US Trade Representative is to review existing free trade agreements to determine if they have appropriate levels of reciprocal and mutually advantageous concessions. This 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.
• There is to be a review of the section 232 tariffs on steel and aluminium including exclusions, exemptions and other import adjustments on steel and aluminium. This could also hurt Australian interests.
• Policies regarding anti-dumping and countervailing duties laws are being reviewed to ensure compliance and address transnational subsidies.
• There is an examination of extraterritorial taxes, World Trade Organization, and federal procurement agreements in connection to ‘Buy America’, export control authorities and national security, and the recent rule from the Bureau of Industry and Security covering the information and communication technology and services on connected vehicles.

Conclusion

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 renegotiate existing agreements lest they are terminated. For example, the US may require Australia pay more for the submarines it purchases 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.

Contact us

If you would like to discuss the impact of Trump’s new announcements and Executive Orders on international trade, please contact a member of our Customs & Trade team.