On Friday, 20 January, businessman Donald J. Trump was sworn in as the 45th President of the United States of America. At the inauguration ceremony, President Trump stated:
From this moment on, it’s going to be America First. Every decision on trade, on taxes, on immigration, on foreign affairs, will be made to benefit American workers and American families.”
We will follow two simple rules: Buy American and Hire American.”
In a Monday morning meeting with CEOs, President Trump warned that U.S. companies that go abroad would pay a heavy price:
If that happens, we are going to be imposing a very major border tax on the products when it comes in.”
U.S. Withdraws from TPP. President Trump signed a memorandum on Monday, 23 January, formally withdrawing the United States from the Trans-Pacific Partnership (TPP). The memorandum officially terminates U.S. participation in the mega-regional trade agreement negotiated by the Obama Administration and fulfills one of President Trump’s campaign promises.
NAFTA – No Action (Yet). White House Press Secretary Sean Spicer said on Monday afternoon that the Trump Administration may be able to renegotiate NAFTA without formally issuing an Executive Order. He also noted that there would be further updates on trade issues later this week.
For more on the TPP and NAFTA, see our post on our sister blog, Latin America Legal.
Brexit – Hard Exit Ahead; May to Visit U.S. Last Tuesday, British Prime Minister Theresa May made clear that the United Kingdom (U.K.) intends to leave the single market and customs union when it formally triggers the exit process from the European Union, which is expected by the end of March. Prime Minister May is set to visit the United States this Friday and is expected to meet with President Trump in Pennsylvania, making her the first foreign leader to meet with the new U.S. President. The two are expected to discuss bilateral trade relations, Syria and the North Atlantic Treaty Organization (NATO).