America First Trade Policy: A New Strategy for Economic Growth and Security

On January 20, 2025, the day of his inauguration, US President Donald Trump issued a memorandum outlining the "America First" trade policy. This document emphasizes strengthening the U.S. economy and national security through a series of targeted measures. The memorandum was addressed to key government officials, including the Secretaries of State, Treasury, Defense, Commerce, and Homeland Security, as well as other senior administration members.

A FOCUS ON AMERICAN PROSPERITY

The memorandum highlights the administration's commitment to prioritizing American economic interests. It claims that since 2017, policies aimed at revitalizing the American economy have resulted in stable supply chains, significant economic growth, low inflation, increased wages, and a path toward reducing trade deficits. Trade policy is framed as a vital component of national security, aiming to reduce dependency on foreign nations for essential goods and services.

TACKLING UNFAIR TRADE PRACTICES

Several key actions are outlined to address the persistent trade deficits and unfair trade practices:

• Trade Deficits: The Secretary of Commerce, alongside the Treasury and the U.S. Trade Representative (USTR), will investigate the causes of trade deficits and propose solutions, including tariffs.

• Revenue Collection: The Treasury will consider the establishment of an External Revenue Service to manage tariffs and trade revenues effectively.

• Unfair Practices: The USTR will review and identify unfair trade practices, recommending actions to correct them, including revisions to current trade agreements.

STRENGTHENING U.S.-CHINA RELATIONS

The memorandum places significant emphasis on economic relations with China:

• Compliance Review: The USTR will assess China's adherence to the Economic and Trade Agreement and recommend necessary actions, such as tariffs, based on compliance.

• Additional Investigations: The USTR will also investigate other Chinese policies that may negatively impact U.S. commerce and suggest appropriate responses.

ENHANCING ECONOMIC SECURITY

The directive further includes measures to bolster the U.S. industrial base and ensure economic security:

• Industrial Base Review: The Secretary of Commerce, in consultation with the Secretary of Defense, will review the manufacturing sector's impact on national security and recommend necessary actions.

• Export Controls: The administration will review and potentially strengthen export controls to maintain technological advantages and prevent strategic goods from reaching adversaries.

REPORTING AND IMPLEMENTATION

The memorandum sets deadlines for various investigations and reports, to be coordinated by the Departments of Commerce, Treasury, and the USTR, and delivered by April 2025. These reports will guide the administration in fine-tuning trade policies to better serve American workers and industries.

In its conclusion, the memorandum clarifies that the outlined actions will be implemented in compliance with existing laws and budgetary constraints, without creating new legal rights or obligations for any party.

SOURCE/RECOMMENDED READ: 

• America First Trade Policy – The White House