Summary

Summary of Executive Order on America First Trade Policy

Purpose

The executive order aims to establish a comprehensive "America First" trade policy that prioritizes the American economy, workforce, and national security. It seeks to rectify existing trade deficits and enhance the country’s industrial and technological capacity.

Actions Taken

• Investigation of Trade Deficits: The Secretary of Commerce, alongside other key departments, will investigate the reasons behind persistent trade deficits and propose remedies, including potential tariffs.

• External Revenue Service Feasibility: The Treasury will explore establishing a new service to efficiently collect tariffs and duties from foreign trade.

• Review of Unfair Trade Practices: The U.S. Trade Representative (USTR) will identify and address unfair trade practices by foreign nations and assess the impact of existing trade agreements, such as USMCA.

• Currency Manipulation Assessment: The Treasury will evaluate foreign currency practices that may disadvantage U.S. trade.

• Tariff Revenue and Public Health Review: Assessment of current policies regarding the importation of goods subject to low tariffs, focusing on protecting revenues and public health.

• Engagement with China: The USTR will review the U.S.-China trade agreement compliance and investigate any discriminatory practices by China.

• Domestic Economic Review: A thorough evaluation of the domestic industrial base will be conducted to address national security concerns.

Expected Impact

• Strengthened U.S. Trade Position: The order aims to improve the competitiveness of American workers and businesses through targeted trade adjustments.

• Enhanced National Security: By minimizing dependence on foreign nations, the policy is expected to bolster the economic and national security of the U.S.

• Increased Compliance and Fairness: Ongoing reviews and recommendations may lead to a fairer trading environment through stricter enforcement of existing laws and regulations.

Reporting Requirements

• Key reports on various investigations and assessments are due by April 1, 2025, from the Commerce, Treasury, and USTR departments, ensuring accountability and transparency in the implementation of the policy. Additional reports will follow later in April.

General Provisions

• The memorandum clarifies that it does not alter the existing powers of executive agencies and must be carried out in accordance with the law and available funding.