Trump won, now it’s time for him to get to work. However, as the world stands by for the Republican to retake his Oath of Office, some are wondering what he’ll prioritize in his first 100 days. Maybe he won’t buy Greenland or annex Canada, even though he’s an interested suitor. But so far, nobody doubts Trump on trade.

It’s Trump time: Tomorrow at noon, Trump is expected to make the first move in his long-foreshadowed trade war, imposing sweeping tariffs on America’s three largest trade allies — which will see a blanket 25% tariff on Canadian and Mexican imports, plus tariffs of at least 40% on Chinese goods. His steadfast commitment to tariffs, which he says he’ll institute “immediately” after taking the Oath of Office tomorrow at the Capitol, is one of the core promises of his campaign — and he promises that “nothing is off the table” when it comes to trade. The policies, intended to encourage American companies to reshore jobs and make more goods at home, are widely expected to have economic consequences on all sides.

• Canada, Mexico, and China have already warned that they’ll respond to Trump’s tariffs with retaliatory tariffs of their own — risking the rise of a protracted and damaging trade war.
• These tariffs are expected to test inflation, which modestly accelerated per its latest report and could worsen if imports like oil and gas, electronics, and groceries come with added costs.

Buy Now, Pay Less?

Rather than being collateral damage from Trump’s policies, many Americans are making big purchases and buying in bulk — one of the few things that they can do to respond to the possible fallout. After all, there’s only so much gasoline you can stockpile.

• In recent weeks, retailers have dogpiled onto fears around tariffs, urging Americans to buy big-ticket items before tariffs are factored into the cost of goods.
• Purchases of nonperishable goods, furniture, and electronics are among the imports heading to the checkout line as uncertainty grows.

Trump responds: Incoming press secretary Karoline Leavitt says that Trump’s previous tariffs “created jobs, spurred investment, and resulted in no inflation.” However, Trump left office during the COVID-19 pandemic, complicating the fairness of this measure. And further, the tariffs against China — which were held in place by his successor — were extremely targeted. These new tariffs, covering all goods from America’s three largest trade partners, are much broader. By the time markets reopen on Tuesday, companies and investors are likely to have thoughts.