On January 20, 2025, U.S. President Donald Trump took office and initiated his America First Trade Policy through a memorandum. This directive instructs federal agencies to examine various international trade issues, including trade deficits and the trade and currency policies of other nations. In addition, during a press conference on inauguration day, President Trump indicated the possibility of imposing a 25% levy on Mexico and Canada by February 1, 2025, citing concerns over border security.
The memorandum highlights the new administration’s intention to address annual trade deficits in goods and assesses their economic and national security implications. It suggests potential measures, such as implementing a global supplemental tariff, to mitigate these deficits. Furthermore, it outlines the President’s plan to establish the External Revenue Service, a new agency tasked with collecting tariffs, duties, and other revenues from foreign sources.
Key points of the memorandum include:
- An evaluation of the U.S.-Mexico-Canada Agreement (USMCA) to understand its impact on American workers, farmers, ranchers, service providers, and businesses, and to provide recommendations on the United States’ involvement in the agreement.
- A review of all trade agreements with the aim of benefiting U.S. workers and manufacturers.
- An instruction for the U.S. Trade Representative (USTR) to assess the trade agreement between the People’s Republic of China (PRC) and the U.S., with the possibility of imposing tariffs if deemed necessary.
- A review by the USTR of the “Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation,” considering potential additional tariff adjustments.
- A directive for the Secretary of the Treasury to evaluate exchange rates to address any instances of currency manipulation or unfair competitive advantage by trading partners.
- Orders for the USTR to negotiate agreements on a bilateral or sector-specific basis to secure export market access for American workers.
- A review by the Secretary of Commerce and USTR of antidumping and countervailing duty (AD/CVD) laws.
- An analysis by the Secretaries of Treasury, Commerce, and Homeland Security, along with the Senior Counselor for Trade and Manufacturing and the USTR, of tariff losses and risks from importing counterfeit products and illegal drugs. This initiative includes potential modifications to de minimis exemptions.
- An assessment by the Secretary of Commerce and the Secretary of Homeland Security of unlawful migration and fentanyl flows from Canada, Mexico, the PRC, and other relevant regions, recommending appropriate trade and national security measures to address the situation.
For further details, the complete America First Trade Policy Memorandum is available. A.N. Deringer, Inc. will continue to monitor developments in the new trade landscape of 2025.