President Trump's approach to tackling inflation focuses on increasing energy production and easing regulatory burdens. While he initially threatened tariffs on several countries, he appears to be holding off for now. Critics argue that his strategy may not effectively address the root causes of inflation, such as housing shortages and global supply chain disruptions.
Trump , during his campaign and after winning the November election, threatened tariffs on China, Mexico, Canada, and other countries, betting that his executive actions could lower energy prices and tame inflation. However, it's unclear if his orders will be effective. Orders anticipated on Monday, including one related to Alaska, aim to reduce regulatory burdens on oil and natural gas production.
He also intends to promote more electricity production, hoping to compete with China in developing technologies like artificial intelligence that rely on energy-intensive data centers. Trump plans to sign a presidential memorandum seeking a comprehensive government approach to addressing inflation. President Donald Trump delivered his inaugural address after being sworn in as the 47th president of the United States. According to an incoming White House official who requested anonymity while briefing reporters, the new administration will end what Trump inaccurately calls an electric car “mandate.” While there's no mandate from outgoing Democratic President Joe Biden to force the purchase of electric vehicles, his policies have encouraged Americans to buy EVs and auto companies to shift from gasoline-powered vehicles to electric cars.Trump threatened tariffs on China, Mexico, Canada, and other countries, but he appears to be delaying higher taxes on imports for now. The official directed reporters to a further announcement regarding tariffs on Monday. Still, Trump pledged in his inaugural address that tariffs would come and that foreign countries would bear the trade penalties, even though those taxes are currently paid by domestic importers and often passed on to consumers. The decision to pause and study tariffs signals to the Canadian government that it should be ready for various outcomes regarding trade with the United States. “Perhaps he’s made decisions to sort of suspend the threat of tariffs over a whole slate of countries. We will wait and see,” Canadian Finance Minister Dominic LeBlanc said. “Mr. Trump has been in a previous mandate unpredictable so our job is to make sure we are ready for any scenario.” Overall, the Republican faces numerous challenges in fulfilling his ambition to lower prices. Biden managed to see the inflation rate drop over two years, yet he was leaving office with price growth still outpacing wages for the past four years. A major driver of inflation is a persistent housing shortage, and U.S. oil production is already at record levels, with producers facing uncertainty about global demand this year. The Federal Reserve, the government body responsible for keeping inflation at a roughly 2% annual target, uses tools like setting short-term rates for banks lending to each other, bond purchases, and public communications to manage inflation.
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