The White House released a “Report to the President on the America First Trade Policy Executive Summary.” The summary explains the Trump Administration’s view that the “large and persistent [U.S.] trade deficit” poses an urgent economic and national security threat to the U.S. The report provides several recommendations to reduce this trade deficit, including: (1) imposing a tariff on certain imports in pursuit of reciprocity and balanced trade; (2) establishing an “External Revenue Service” to improve tariff collection; (3) renegotiating the U.S-Mexico-Canada Agreement; (4) requiring the Treasury Department to assess the policies and practices of major U.S. trade partners with respect to the exchange rate between their currencies and the U.S. dollar; (5) reviewing the U.S.’s 14 comprehensive trade agreements that are in force with more than 20 countries to ensure the agreements are “aligned with American interests”; (6) reviewing the Commerce Department’s anti-dumping and countervailing duty policies; (7) ending the de minimis exemption for imports valued at $800 or less; (8) investigating the imposition of extraterritorial taxes by foreign governments; and (9) renegotiating or modifying the World Trade Organization’s Government Procurement Agreement and, if unsuccessful, withdrawing from it.
The report also discusses economic and trade relations with China. The summary states that USTR has reviewed the first Trump Administration’s “Phase One” trade deal with China and found that “China has failed to live up to its commitments on agriculture, financial services, and protection of intellectual property (IP) rights.” The summary says USTR made several unspecified potential responses to bring China into compliance with the Phase One deal. The summary also notes that a review of the tariffs the first Trump Administration imposed on China in 2018 found that the tariffs still remain “fit for purpose” and that there “may be a need for additional…investigations…of China’s non-market policies” under Section 301 of the Trade Act of 1974. The summary also says USTR reviewed proposals related to Permanent Normal Trade Relations with China “and advised the President accordingly.”
Additionally, the summary said a review of the Trump Administration’s actions under Section 232 of the Trade Expansion Act of 1962 related to steel and aluminum tariffs identified additional products and sectors that merit consideration for new Section 232 investigations including pharmaceuticals, semiconductors, and certain critical minerals. The summary also notes that a review of U.S. export controls found that the U.S. must “ensure that its advanced technology does not flow to our adversaries” and that export controls should be “simpler, stricter, and more effective, while promoting U.S. dominance in AI and asserting global technological leadership.” Pursuant to the “America First Investment Policy,” the “National Security Council and the Department of the Treasury will evaluate options that allow American business to thrive while ensuring that they, too, put America First and do not undermine U.S. national security interests.” Finally, the summary notes that USTR assesses risks posed by data tariffs and “made recommendations to ensure that the e-commerce moratorium is made permanent.”