One of President Trump’s initial actions in office was the release of a memorandum outlining his America First Trade Policy.
The policy intends to promote investment and productivity, enhances the Nation’s industrial and technological advantages, defends its economic and national security, and benefit American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.
A significant takeaway for the trade community was the absence of any immediate plans to increase Section 301 tariffs on Chinese imports. Instead, the memorandum emphasized a comprehensive review and analysis of actions the US could take to address unfair trade practices and burdens on American commerce.
Actions on Unfair Trade Practices
The memorandum outlined several areas of focus for addressing trade inequities:
- Evaluating Revenue Collection Methods: Investigating the feasibility of establishing an External Revenue Service (ERS) to improve tariff, duty, and foreign trade revenue collection.
- Preparing for USMCA Review: Initiating public consultations under Section 4611(b) of Title 19, United States Code, in preparation for the July 2026 review of the United States-Mexico-Canada Agreement (USMCA).
- Assessing Trade Agreements: Reviewing current US trade agreements, including sector-specific accords.
- Analyzing Antidumping and Countervailing Duty Policies: Reevaluating policies and regulations related to the application of AD/CVD laws.
US-China Trade Relations
The memorandum also addressed US-China trade relations, outlining several key directives:
- Reviewing the US-China Trade Agreement: The US Trade Representative (USTR) will evaluate China’s compliance with the Economic and Trade Agreement between the two nations.
- Assessing Section 301 Tariff Actions: The USTR will consider findings from the May 14, 2024, report, Four-Year Review of Actions Taken in the Section 301 Investigation, and determine if tariff adjustments are needed.
- Investigating Unfair Practices: The USTR will examine additional Chinese policies and practices that may be discriminatory or detrimental to US commerce.
- Evaluating Legislative Proposals: The Secretary of Commerce and the USTR will review potential legislation related to Permanent Normal Trade Relations with China.
- Protecting Intellectual Property Rights: The Secretary of Commerce will assess the status of US intellectual property rights, such as patents, copyrights, and trademarks, granted to Chinese entities.
The memorandum directs various agencies to deliver detailed reports on these topics to the President by April 1, 2025. In the meantime, we will continue to monitor developments related to the memorandum and provide updates as more information becomes available.