section_path: Key events and negotiations/January-March 2025
section_name: January-March 2025
paragraph_text: January-March 2025
  
  Trump was inaugurated for a second term on January 20, 2025. In his inaugural address, he pledged to "immediately begin the overhaul of our trade system to protect American workers and families." On February 1, he declared several " national emergencies " regarding fentanyl trafficking and invoked the IEEPA to impose 25% tariffs on most goods from Mexico and Canada and 10% on goods from China. Tariffs on USMCA-compliant Mexican and Canadian goods were quickly suspended, but the "fentanyl tariff" on Chinese goods was raised to 20% on March 4. On February 13, Trump announced plans to impose "reciprocal tariffs" on all countries with trade barriers against the US in April, prompting a wave of diplomatic outreach.
  
  Analysts and foreign governments expressed confusion over the administration's tariff strategies and openness to negotiation. Trump varyingly stated that tariffs would be lifted following trade negotiations, retained to tax foreign goods to fund government spending, or used to discourage foreign goods and protect US manufacturing. Canada alleged that tariffs on its exports were intended to damage its economy and pressure annexation into the United States. When Vietnam offered to eliminate all tariffs on American goods, economic advisor Peter Navarro dismissed the proposal. "This is not a negotiation," he said. "This is a national emergency based on a trade deficit that's gotten out of control."
  
  On March 2, the administration imposed 25% tariffs on imported steel and aluminum products. First-quarter US GDP fell -.03%. US firms and consumers stockpiled foreign goods before new tariffs took effect, causing imports to soar 41.3%.