First Steps in Creating President Trump’s Trade Approach
Randy Wolken, President & CEO
On his first day in office, President Trump outlined the contours of his “America First Trade Policy” in an Executive order (EO). His proclaimed primary objectives are to reduce our dependence on foreign nations for critical supply chains, promote investment and productivity, and enhance our nation’s industrial and technological advantages. During his first week, the president didn’t announce new tariffs, however, his EO instructs key agencies to begin efforts to identify underlying concerns about unfair or unbalanced trade, specifically regarding trade with China and matters related to economic security. The findings could form the basis for the administration’s course of action which could potentially lead to tariffs or other policy measures.
The President’s desire is to secure three comprehensive reports by April 1. These reports will investigate persistent trade deficits, unfair trade practices, currency manipulation, importation of counterfeit products and contraband, China’s compliance with the “Phase One” deal, as well as review the U.S. export control system.
An area of focus for the President will likely be tariffs on Canada, Mexico, and China. The President’s EO tasks the U.S. Department of Commerce with assessing unlawful migration and fentanyl flows from those countries. These findings are also due April 1. However, President Trump could issue a separate EO using international emergency powers prior to that date, which would enable him to impose tariffs sooner.
President Trump is hoping to build on his past success. He’s cited the China “Phase One” deal, the United States–Mexico–Canada Agreement (USMCA), and Section 232 tariffs as successful elements of his first-term agenda. The EO also instructs the United States Trade Representative to begin its public consultation processes in preparation for the six-year review of the USMCA and assess the impacts of U.S. participation in the agreement.
The National Association of Manufacturing (NAM)’s view on the next steps involving the USMCA comes from NAM President and CEO, Jay Timmons. He said in an interview, “We are in a global economy, and we want to be able to produce as much as we can. We need the entire continent of North America to be able to do exactly that.” He also noted, “The United States, Canada, and Mexico—because of the USMCA that was negotiated and implemented a few years ago—has the opportunity to take together some actions to thwart problematic, market-distorting practices that are coming out of other countries, specifically China.”
At MACNY, we’re watching to see the impact of a new Trump Administration agenda regarding trade and future trade agreements. We want to keep our members informed and help you navigate your trade needs and responses. Please let us know your concerns and challenges so we can better inform our congressional delegation.