Tillerson lobbied against Rule 1504 of the Dodd–Frank reform and protections, which would have required Exxon to disclose payments to foreign governments. In 2017, Congress voted to overturn Rule 1504 one hour before Tillerson was confirmed as Secretary of State.
On January 4, 2017, The Financial Times reported that Tillerson would cut his ExxonMobil ties if he became Secretary of State. Walter Shaub, the director of the United States Office of Government Ethics, said he was proud of the ethics agreement developed for Tillerson, who was now "free of financial conflicts of interest. His ethics agreement serves as a sterling model for what we'd like to see with other nominees."
In June 2017, Tillerson said Trump had asked him to "stabilize the relationship (with Russia) and build trust."
On January 3, 2017, ExxonMobil announced they had reached an agreement with Tillerson "to sever all ties with the company to comply with conflict-of-interest requirements associated with his nomination as secretary of state."
Tillerson's use of the alias became publicly known in March 2017, after New York State Attorney General Eric Schneiderman wrote in a letter to a judge that Tillerson had used the "Wayne Tracker" email for at least seven years. Later that month, Exxon revealed that emails from the alias account from September 2014 to September 2015 were missing; a further search recovered some emails, but none between September 5, 2014, and November 28, 2014. An attorney for Exxon said that a "unique issue" limited to that account led to emails being automatically deleted.
On July 9, 2017, Tillerson received the Dewhurst Award from the World Petroleum Council in recognition for "outstanding contribution to the oil and gas industry" during his 41 years at Exxon Mobil.
On January 20, 2017, shortly after being sworn in as President of the United States, Trump formally sent his nomination of Tillerson as Secretary of State to the United States Senate. The Senate Foreign Relations Committee approved Tillerson's nomination 11–10, a strict party line vote, on January 23, 2017.
The Senate confirmed Tillerson as Secretary of State on February 1, 2017. The Senate voted 56 to 43, with all 52 Republicans in support of his nomination as well as three Democrats and one independent. He was sworn in on the same day by Vice President Mike Pence.
On February 15, 2017, Tillerson embarked on his first overseas trip as Secretary of State to Bonn, Germany, meeting with foreign ministers from the G20. In Bonn, Tillerson had meetings with Foreign Minister Sergey Lavrov of Russia and Foreign Secretary Boris Johnson of the United Kingdom, as well as his counterparts from Italy, Turkey, Saudi Arabia, Oman, and the United Arab Emirates. Tillerson urged Russia to withdraw from eastern Ukraine, stating that "the United States will consider working with Russia when we can find areas of practical cooperation that will benefit the American people. Where we do not see eye to eye, the United States will stand up for the interests and values of America and her allies. As we search for new common ground, we expect Russia to honor its commitment to the Minsk agreements and work to de-escalate the violence in Ukraine." Tillerson also reaffirmed U.S. commitment to defending South Korea and Japan.
Tillerson made his first visit to Mexico on February 23, 2017, traveling with Secretary of Homeland Security John F. Kelly. When meeting with Secretary of Foreign Affairs Luis Videgaray Caso of Mexico, Tillerson acknowledged differences between the U.S. and Mexico on views of border security, but also acknowledged the need for cooperation in addressing migration, as well as arms trafficking. Tillerson recused himself from TransCanada's application for a presidential permit for the proposed Keystone XL pipeline.
Before the inauguration, Tillerson selected Elliott Abrams to be the United States Deputy Secretary of State. In February 2017, they held an interview with President Trump in the Oval Office. There, Tillerson contradicted the President's criticism of the Foreign Corrupt Practices Act, advising Trump of Exxon's success in refusing a bribe demand by Yemen's oil minister. The next day, Fox News criticized Abrams, and Tillerson soon told Abrams he would not be nominated.
In mid-March 2017, Tillerson made his first trip to Asia, traveling to Japan, South Korea, and China. Tillerson remarked that diplomatic efforts in the past 20 years to stop North Korea's nuclear development had "failed". Tillerson also stated the United States may need to take preemptive action, remarking "Certainly, we do not want things to get to a military conflict ... but obviously, if North Korea takes actions that threatens the South Korean forces or our own forces, then that would be met with an appropriate response. If they elevate the threat of their weapons program to a level that we believe that requires action, that option is on the table."
On March 30, 2017, Tillerson met with President Recep Tayyip Erdoğan of Turkey. Turkey has criticized the United States over its support for Syrian Kurds. In May, protestors and Erdoğan's bodyguards clashed outside of the Turkish Ambassador's Residence in Washington, D.C. Tillerson said that the incident was "outrageous" and that the Trump administration has expressed "dismay" over it. He said the administration would await the outcome of an investigation before taking further action.
In mid-April 2017, Tillerson made his first trip to Russia as Secretary of State, meeting with Foreign Minister Sergey Lavrov and President Vladimir Putin. At a news conference, Tillerson remarked that Russian–U.S. relations were at a "low point". Tillerson also warned Russia of the risk of "becoming irrelevant in the Middle East" by continuing to support Syrian President Bashar al-Assad.
In May 2017, Tillerson joined Trump on the President's first overseas trip, with the first destination being Saudi Arabia. While in Saudi Arabia, Tillerson held a joint press conference with Saudi Arabian Foreign Minister Adel bin Ahmed Al-Jubeir.
In June 2017, Tillerson excluded Myanmar, Iraq, and Afghanistan from the list of countries that employ child soldiers in that year's Trafficking in Persons Report, rejecting the unanimous recommendations of staff. Staff then circulated a memo in their Dissent Channel alleging that Tillerson's decision was in violation of the Child Soldiers Prevention Act. In late November 2017, the topic garnered national attention when the State Department defended Tillerson's actions in the wake of an anonymous complaint by a State Department official to the State Department Inspector General and the distribution of supporting documents to the Inspector General and to the Senate Foreign Relations Committee.
In November 2017, Tillerson said that recent Rohingya persecution in Myanmar was ethnic cleansing.
In October 2017, news reports surfaced regarding a deteriorating relationship between Tillerson and Trump. According to reports, in a July 20 meeting, Trump suggested a tenfold increase in the United States nuclear arsenal, which would cost trillions and take centuries, after which individuals familiar with the meeting told journalists that Tillerson either called Trump a "moron" or a "fucking moron". Additionally, there were well-sourced reports of Tillerson offering to resign his office as Secretary of State, only to be discouraged from doing so by Vice President Mike Pence; however, these were officially denied by both Tillerson and the White House. Furthermore, on October 1, Trump directly contradicted, via a public tweet, Tillerson's policy of negotiation with North Korea; this move was widely panned by experts, who thought that such a public undermining of the chief diplomat of the United States would weaken Tillerson's ability to negotiate with other countries. On October 10, after Tillerson's alleged "moron" comment was reported in the media, Trump challenged Tillerson to "IQ tests", and three days later Senator Bob Corker from Tennessee, the Chair of the influential Senate Foreign Relations Committee who had become a vocal Trump critic around that time, remarked that Trump was "publicly castrating" Tillerson.
In March 2017, Robert Jervis of Columbia University wrote that Tillerson "had little impact on the Trump administration so far" and that his influence would continue to wane. That same month, William Inboden of the University of Texas at Austin defended Tillerson, saying that he deserves more time. Daniel W. Drezner of the Fletcher School of Law and Diplomacy at Tufts University was highly critical of Tillerson, calling him an "unmitigated disaster", and "the most incompetent Secretary of State in modern history." Elliot Cohen of Johns Hopkins University said that Tillerson might be one of the weakest Secretaries of State in American history. Elizabeth Saunders of George Washington University said that Tillerson's tenure had damaged the State Department "for a generation" and decreased America's ability to respond to major crisis.
In October 2017, Politico reported that Tillerson's major foreign policy positions include "urging the United States to stay in the Trans-Pacific Partnership and the Paris climate accord, taking a hard line on Russia, advocating negotiations and dialogue to defuse the mounting crisis with North Korea, advocating for continued U.S. adherence to the Iran nuclear deal, taking a neutral position in the dispute between Qatar and Saudi Arabia, and reassuring jittery allies, from South Korea and Japan to our NATO partners, that America still has their back".