From halting the TikTok ban to tackling energy and tariffs, here’s Trump’s first order of business
The executive orders aim to eliminate diversity, revive oil and gas production and restore economic competitiveness, among other things
PRESIDENT Donald Trump has issued a series of executive orders and announced other priorities on his first day in office. These orders are intended to eliminate diversity, equity and inclusion funding, bring back oil and gas production, and tackle the issue of US trade deficits, among others.
The list includes:
National energy emergency
Trump signs a declaration on “national energy emergency”, permitting the president to boost US energy production through ways such as drilling in Alaska. He had cited Alaska’s importance to national security and potential for exporting liquefied natural gas to the US and its allies, according to an incoming administration official.
US oil prices were down by more than US$1 per barrel in early Asian trade on Tuesday (Jan 21) after Trump announced his plan to maximise US oil and gas production by declaring a national emergency.
Trade and tariffs
The president ordered federal agencies to “investigate and remedy” persistent US trade deficits, as well as address other countries’ unfair trade practices and currency manipulation.
The draft trade memo also directs federal agencies to assess China’s performance under a trade deal he signed with Beijing in 2020 to end a nearly two-year tariff war.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The deal required China to increase purchases of US exports by US$200 billion over two years, but Beijing failed to meet the targets due to the Covid-19 pandemic.
In his inaugural address, Trump said the US would collect “massive amounts” of income from foreign trade duties as his administration works to rebuild American industry.
He also revealed that he is considering a 25 per cent tariff on goods from Mexico and Canada as they were allowing many people to cross the border. He said the action could come on Feb 1.
The president also vowed to address a longstanding trade deficit with the European Union (EU), either by imposing tariffs or through stepped-up oil and gas exports.
Exiting the Paris Agreement
Trump signed an order to withdraw from the world’s main climate pact as he moves to implement a sweeping energy agenda focused on raising fossil fuel production.
This marks the second time Trump has pulled the US out of the agreement. The first withdrawal took years and was immediately reversed by the Biden presidency in 2021. However, the latest withdrawal is likely to take less time as the president will not be bound by the deal’s initial three-year commitment.
Following its pull-out, the US will join Iran, Libya and Yemen as the only four countries not partaking in the agreement. Under the Paris Agreement, nations work together to limit global warming to 1.5 deg C above pre-industrial levels to avoid environmental havoc.
Undoing Biden’s actions
Trump revoked nearly 80 executive actions set by the previous Biden administration, including one on artificial intelligence that was signed in October 2023. The order was aimed at addressing risks and opportunities around the rapidly expanding technology.
Trump also repealed a 2021 executive order signed by his predecessor Joe Biden that sought to ensure half of all new vehicles sold in 2030 were electric. The 50 per cent target won the support of US and foreign automakers.
He also plans to direct agencies to reconsider rules mandating more stringent emissions standards that would require automakers to sell between 30 and 56 per cent electric vehicles by 2032 in order to comply.
Trump also rescinded executive orders that promoted diversity, equity and inclusion, and promulgated rights for LGBTQ+ people and racial minorities.
TikTok ban
Trump signed an executive order to delay by 75 days the federal ban on TikTok, stating it grants him the authority to “either sell it or close it”. The order directs the attorney-general to not enforce the law “to permit my administration an opportunity to determine the appropriate course of action with respect to TikTok”.
Trump said that TikTok will be “worthless” if he does not approve the potential deal selling it, and that he wants the US to get “half of TikTok”. He also said that if China does not approve the 50 per cent sale, it would be considered a “hostile act”.
Department of Government Efficiency
On Monday, Trump formally announced the establishment of an advisory group tasked with implementing extensive cuts to the US government and widespread closures of government agencies, a decision that promptly faced lawsuits contesting its actions.
Known as the Department of Government Efficiency, or Doge, the new unit is being run by Tesla chief executive Elon Musk.
“To restore competence and effectiveness to our federal government, my administration will establish the brand new Department of Government Efficiency,” Trump said in his inaugural speech.
OECD global tax deal
The US president declared that the global minimum corporate tax deal supported by the Biden administration and negotiated with more than a hundred other countries has “no force or effect” in the US.
The EU, Britain and other nations have adopted the 15 per cent global minimum corporate tax, but the US Congress has not passed legislation to align the US with this standard.
It currently enforces a global minimum tax of about 10 per cent, introduced as part of the 2017 tax reform under Trump in his first term, and approved by Republicans.
Countries that have implemented the 15 per cent rate may be able to impose a “top-up” tax on US companies paying the lower rate. Trump has described these measures as “retaliatory” in a memo.
“Because of the global tax deal and other discriminatory foreign tax practices, American companies may face retaliatory international tax regimes if the United States does not comply with foreign tax policy objectives,” the memo said.
“This memorandum recaptures our nation’s sovereignty and economic competitiveness by clarifying that the global tax deal has no force or effect in the United States.”
Immigration policy
Trump also signed a series of orders that have signalled a dramatic change to immigration policy. This includes declaring a national emergency at the country’s southern border, which will see him deploy armed forces to “engage in border security”.
He also aims to complete a wall on the US-Mexico border, an effort that began in his first term.
The president also said in his speech that the government will “begin the process of returning millions and millions of criminal aliens back to the places from which they came”.
He also plans to suspend refugee resettlement for six months and will end “catch and release”, the policy of releasing migrants while they wait for hearings on their asylum status. Doing away with the asylum process would also remove those awaiting court hearings in the US, said officials.
Trump’s administration is also said to be reinstating the “Remain in Mexico” policy, which means those seeking asylum have to stay in Mexico before their US immigration court date.
Copyright SPH Media. All rights reserved.
