Inauguration Day 2025: Presidential Executive Orders Round-up
On January 20, 2025, Donald J. Trump swore the oath of office and was inaugurated as the 47th President of the United States of America. As promised during his electoral campaign, President Trump immediately moved to sign a raft of executive orders that signal just the start of an aggressive legislative and political agenda for the new administration. Here is what you should know about the first day in office for President Trump, and what his executive orders mean for doing business in the United States going forward.
What are executive orders?
An executive order is simply a written document issued by the President and titled by him as such, at his discretion.[1] President George Washington issued the first executive order on June 8, 1789, in which he asked that heads of executive departments submit “‘a clear account of affairs connected with their Departments.”[2]
The President’s power to issue executive orders is based in Article II of the U.S. Constitution, which covers the executive power of the presidency. The U.S. Constitution does not explicitly provide the President with this power; rather, the authority to issue executive orders is implied by Section 1 of Article II, which states that “The Executive Power shall be vested in a President of the United States of America.”[3]
Executive orders are usually directed to and govern the actions of government officials and agencies – they generally do not directly affect private individuals. In other words, they are administrative edicts by the president as to how the government will operate and how its employees will conduct themselves. Executive orders have force so long as they are directed to a matter that is properly within the remit of the President (that is, an area set out in Article II of the U.S. Constitution or lawfully delegated to the President by Congress).[4] This limitation was considered by the U.S. Supreme Court in Youngstown Sheet & Tube Co. v. Sawyer, where the Court held that the scope of the President’s ability to issue an executive order depends on whether he acts with the express or implied authorization of Congress, without a congressional grant or prohibition, or against the expressed will of Congress.[5]
As the U.S. Supreme Court’s holding in Youngstown Sheet & Tube Co. suggests, executive orders are not laws, and can be overridden by Congress. Furthermore, past executive orders can be revoked at the President’s discretion.
What are President Trump’s first executive orders?
In his inauguration speech, President Trump stated his intention to wield executive power swiftly to enact a variety of new directional policies for the federal government, while unwinding former President Biden’s executive agenda.[6] While much remains to be seen about the implementation of President Trump’s orders – and how they will fare when many are inevitably challenged in court – here are the five key takeaways:
- President Trump stated his intention to address “unfair and unbalanced trade”, including by creating an “External Revenue Service” and assessing the impact of the United States-Mexico-Canada Agreement on U.S. workers.[7]
- Immigration and the border will be a focus. President Trump declared a national emergency at the southern border,[8] detailed a number of measures to stop illegal immigration and to detain and remove illegal aliens,[9] and designated Mexican drug cartels as foreign terrorist organizations.[10]
- President Trump also stated his intention to increase U.S. energy production, including by declaring a “national energy emergency”[11] and expediting energy permitting in the U.S., including Alaska specifically.[12] He also signed an executive order withdrawing the United States from the Paris climate agreement.[13]
- Social issues figured prominently. Among other things, President Trump dismantled federal diversity, equity, and inclusion programs,[14] and stated that the U.S. Government’s policy is that there are only two genders.[15]
- While Canada watchers were looking out for any sign of tariffs, none materialized on day 1 (though President Trump did direct the Secretaries of Commerce and Homeland Security to assess unlawful migration and fentanyl flows from Canada and Mexico and “recommend appropriate trade and national security measures.”)[16] In a press conference on January 20, however, President Trump signaled that he may impose a 25% tariff on Canada on February 1.
The takeaways for Canadian business
President Trump’s executive agenda will affect Canadian investors and businesses whether they operate in the United States or not. As Canada’s largest and most important trading partner considers whether and how to impose tariffs on Canadian exports, the Canadian government has signaled that a range of counter-measures – with wide implications for the Canadian economy – are being contemplated in Ottawa. Those measures may in turn be complicated by the recent prorogation of Parliament, and the pending Liberal Party leadership race and election in Canada. In short: uncertainty will dominate Canada’s economic relationship with the United States for the foreseeable future.
The implications of President Trump’s first executive orders extend beyond trade. Social policy shifts like those signalled in President Trump’s orders can reverberate through corporate governance and culture. And dramatic changes in U.S. immigration policy may lead to a thicker boarder, as well as unintended consequences both within and outside of the United States as people and businesses contend with heightened enforcement efforts by U.S. immigration authorities.
Individuals and organizations will need to stay nimble in order to stay ahead of the political and legal uncertainty that will follow as the first Trump executive orders are issued, and likely challenged in court.
McCarthy Tétrault can help. If you have questions about how the new U.S. Administration’s priorities will affect your business, reach out to one of the authors of this article or to your regular McCarthy Tétrault contact. Our industry-leading Public Sector team is well positioned to help you navigate the risks and opportunities that will follow the implementation of the new Administration’s priorities.
[1] Committee on Government Operations, “Executive Orders and Proclamations: A Study of A Use of Presidential Powers,” December 1957, available at: https://babel.hathitrust.org/cgi/pt?id=mdp.39015034716152&view=1up&seq=3.
[2] N.J. Historical Records Survey Work Projects Administration, List and Index of Presidential Executive Orders 1789-1941, (Clifford L. Lord, ed., 1943), at p.1.
[3] Library of Congress, “Executive Orders: A Beginner’s Guide,” December 21, 2022, available at: https://guides.loc.gov/executive-orders/introduction.
[4] See Congressional Research Service, “Executive Orders: An Introduction,” March 29, 2021, available at: https://crsreports.congress.gov/product/pdf/R/R46738.
[5] 343 U.S. 579 (1952).
[6] See New York Times, “Donald Trump’s Second Inaugural Speech, Annotated,” January 20, 2025, available at: https://nytimes.com/interactive/2025/01/20/us/trump-inauguration-speech-annotated.html; The White House, “Initial Recissions of Harmful Executive Orders and Actions”, January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/initial-rescissions-of-harmful-executive-orders-and-actions/.
[7] The White House, “America First Trade Policy,” January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/.
[8] The White House, “Declaring a National Emergency at the Southern Border of the United States”, January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/declaring-a-national-emergency-at-the-southern-border-of-the-united-states/.
[9] The White House, “Securing our Borders”, January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/securing-our-borders/.
[10] The White House, “Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists,” January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/designating-cartels-and-other-organizations-as-foreign-terrorist-organizations-and-specially-designated-global-terrorists/.
[11] The White House, “Declaring a National Energy Emergency”, January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/declaring-a-national-energy-emergency/.
[12] The White House, “Unleashing Alaska’s Extraordinary Resource Potential”, January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-alaskas-extraordinary-resource-potential/.
[13] The White House, “Putting America First in International Environmental Agreements”, January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/putting-america-first-in-international-environmental-agreements/.
[14] The White House, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/ending-radical-and-wasteful-government-dei-programs-and-preferencing/.
[15] The White House, “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government,” January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/defending-women-from-gender-ideology-extremism-and-restoring-biological-truth-to-the-federal-government/.
[16] The White House, “America First Trade Policy,” January 20, 2025, available at: https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/.