On January 20, 2025, a significant memorandum was issued, outlining a robust and reinvigorated trade policy aimed at prioritizing the American economy, the American worker, and national security.
This America First trade policy builds on initiatives from 2017, which claimed to have led to a revival characterized by stable supply chains, massive economic growth, historically low inflation, increased real wages, and a notable rise in median household wealth.
The memorandum emphasizes that Americans deserve trade policies that put their interests first, promoting investment, productivity, and the nation’s distinct industrial and technological advantages.
The directive addresses critical areas, focusing on unfair and unbalanced trade practices that have contributed to persistent trade deficits in goods.
The Secretary of Commerce, in consultation with the Secretary of the Treasury and the United States Trade Representative, is tasked with investigating the root causes of these trade deficits and their economic and national security implications.
Such investigations may lead to recommendations for measures like a global supplemental tariff aimed at remedying the trade imbalances.
In pursuit of a more organized revenue collection process, the Secretary of the Treasury, in concert with the Secretary of Commerce and the Secretary of Homeland Security, will evaluate the feasibility of establishing an External Revenue Service (ERS) dedicated to collecting tariffs, duties, and trade-related revenues.
The United States Trade Representative will also engage in an extensive review of unfair trade practices by other nations, proposing actions that fall under established legal authorities to mitigate these practices.
Furthermore, the United States Trade Representative is expected to initiate public consultations regarding the United States-Mexico-Canada Agreement (USMCA) to assess its impact on American stakeholders ahead of the agreement’s 2026 review.
The economic dealings with the People’s Republic of China (PRC) are also a focal point of the memorandum, as the memorandum instructs the United States Trade Representative to review existing agreements between the U.S. and PRC.
This review aims to determine compliance with those agreements, leading to recommendations for appropriate actions, which may include tariff adjustments.
In conjunction with this, the United States Trade Representative is also tasked with assessing technological transfer practices by the PRC, analyzing any unfair trade practices, and making recommendations to address these issues.
Moreover, a thorough evaluation of national security implications concerning industrial reliance on international supply chains falls under the Secretary of Commerce’s purview.
This includes conducting a comprehensive review of the United States’ manufacturing base, assessing whether any adjustments to imports are necessary to safeguard national security interests.
The security considerations extend to refining the U.S. export control system to account for developments concerning strategic adversaries, ensuring the maintenance of the nation’s technological advantage.
The memorandum also highlights the urgent need to address the dual issues of unlawful migration and the flow of dangerous substances, like fentanyl, across borders.
The Secretary of Commerce and Secretary of Homeland Security are instructed to assess these challenges and recommend relevant trade and national security measures to tackle the emerging crises at the U.S. borders.
Importantly, as part of these sweeping changes, comprehensive reports covering the findings and recommendations from various sections of the memorandum are due to be delivered to the President by April and May of 2025.
The reports will be coordinated among the key departments to ensure a unified approach to implementing this ambitious America First trade policy.
In conclusion, the memorandum marks a decisive step towards reinvigorating America’s trade policy by addressing longstanding issues with trade deficits, enhancing national security, and promoting economic resiliency.
It underscores a commitment to protecting American workers, businesses, and strategic interests in an era of evolving global trade challenges.
As this policy framework rolls out, its success will depend on effective coordination and implementation across multiple government departments, aiming for a sustainable and fair trade landscape for the American populace.
image source from：https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/
