A Look at the New Trade Policy Reshaping Global Commerce
The White House recently released a memorandum outlining a comprehensive “America First Trade Policy” that aims to reshape the United States’ approach to international trade.
This policy update, issued on January 20, 2025, sets forth a series of initiatives and reviews designed to prioritize American economic interests, national security, and worker benefits.
Key Policy Initiatives
Addressing Trade Imbalances
The Department of Commerce is tasked with investigating the causes of persistent trade deficits in goods and recommending measures to remedy them, potentially including a global supplemental tariff
Additionally, the Treasury Department will explore the creation of an External Revenue Service (ERS) to manage trade-related revenues
Review of Trade Agreements
The U.S. Trade Representative is directed to review existing trade agreements, including the USMCA, to ensure they provide reciprocal benefits and maintain advantages for the United States
This includes preparing for the July 2026 review of the USMCA and assessing its impact on American workers and businesses
Currency Manipulation
The Treasury Secretary will review the currency practices of major trading partners and recommend measures to counter manipulation that provides unfair advantages in international trade
China-Specific Measures
The policy outlines several actions focused on trade relations with China, including:
- Reviewing the Economic and Trade Agreement between the U.S. and China
- Assessing the need for additional tariffs or measures based on China’s compliance
- Investigating other potentially unfair trade practices by China1
National Security and Export Controls
The policy emphasizes the importance of maintaining technological advantages and enhancing export controls. It calls for a review of the U.S. export control system and recommendations for modifications to address national security concerns
Implications for the Trade Industry
These initiatives signal a potential shift towards more protectionist trade policies. Industries should prepare for:
- Possible changes in tariff structures and trade agreement terms
- Increased scrutiny of international supply chains, especially those involving China
- Stricter export controls and technology transfer regulations
- Greater emphasis on domestic manufacturing and “Buy American” policies
The trade industry should closely monitor the outcomes of these reviews and investigations, as they are likely to shape U.S. trade policy in the coming years. The administration has set April 1, 2025, as the deadline for most of these reports, indicating that significant policy changes may be implemented in the latter half of 2025.
Source: https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/
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