By David Lawder, Andrea Shalal and Steve Holland
WASHINGTON (Reuters) -Donald Trump will issue a broad trade memo on Monday that stops short of immediately imposing new tariffs on his first day in office but directs federal agencies to evaluate U.S. trade relationships with China, Canada and Mexico, an incoming Trump administration official said.
After weeks of intense global speculation over which tariffs Trump would impose upon taking office for his second term as U.S. president at noon EST (1700 GMT), news that Trump would take more time on tariffs drove a relief rally in global stocks and a dive in the dollar against major currencies.
Trump has vowed to impose steep tariffs of 10% to 20% on global imports into the U.S. and 60% on goods from China to help reduce a trade deficit that now tops $1 trillion annually.
He said after his election in November that on his first day in office, he would sign “all necessary documents” to impose an immediate 25% import surcharge on imports from Canada and Mexico if they failed to halt the flow of illegal migrants and illicit drugs into the U.S.
Such duties would tear up long-standing trade agreements, upend supply chains and raise costs, according to trade experts.
The official, confirming a Wall Street Journal report that cited a summary of Trump’s memo, said the new president will instead direct agencies to investigate and remedy persistent trade deficits and address unfair trade and currency policies by other nations.
The memo will single out China, Canada and Mexico for scrutiny but will not announce new tariffs, the official said. It will direct agencies to assess Beijing’s compliance with its 2020 trade deal with the U.S., as well as the status of the U.S.-Mexico-Canada Agreement, or USMCA, the official said.
RELIEF RALLY
The U.S. dollar slumped broadly on the news against a basket of maj