Day One Trump Administration Updates 


President Donald Trump on Day One tasked the Departments of Treasury, Commerce, State, and Homeland Security with reviewing existing trade agreements and addressing trade deficits and currency manipulation by April 1. The President did not impose tariffs; however, he instructed the U.S. Trade Representative (USTR) to investigate the possibility to impose tariffs on trading partners. 


Here is the link to the America First Trade Policy Executive Order and summaries of Day One actions: 


China: The order directs USTR to review an existing so-called Phase 1 trade deal with China signed during Trump’s first term to determine whether Beijing is acting in accordance with the deal. President Trump has informed his staff that he plans to visit China this year. The Administration did not mention impending tariffs on China. 


Global Trade: Trump’s order asks USTR and Peter Navarro, the senior counselor for trade and manufacturing, to review the impact of “all trade agreements,” including the rules set by the World Trade Organization, to ensure deals favor domestic workers and manufacturers, rather than foreign workers. Trump’s trade officials also mentioned interest in future agreements with India, the Philippines and the UK. 


Tariffs: President Trump said that 25 percent tariffs on Canadian and Mexican goods could take effect on February 1 to pressure the two countries to do more to control illegal immigration and the flow of fentanyl entering the United States. The order directs Commerce and Homeland Security to assess illegal migration and the flow of fentanyl from Canada, Mexico, and China and "other relevant jurisdictions" and recommend trade action to resolve the issue. 


Export Controls: The order directs the Departments of State and Commerce, in cooperation with other agencies, to review the U.S. export control system and make recommendations to “enhance our Nation’s technological edge and how to identify and eliminate loopholes in existing export controls” focused on the transfer of so-called strategic goods, software, and other technology to American rivals. 


Customs Reforms:  The order directs the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, and the Senior Counselor for Trade and Manufacturing, in consultation with the United States Trade Representative, to assess the loss of tariff revenues and the risks from importing counterfeit products and contraband drugs, e.g., fentanyl, that each result from the current implementation of the $800 or less, duty-free de minimis  exemption under section 1321 of title 19, United States Code, and shall recommend modifications as warranted to protect both the revenue of the United States and the public health by preventing unlawful importations. The Administration did not mention the current new rules on de minimis. The order also directs the Secretary of Commerce to review policies and regulations regarding the application of antidumping and countervailing duty (AD/CVD) laws, including about transnational subsidies, cost adjustments, affiliations, and “zeroing.” 


External Revenue Service: President Trump’s order directs Treasury, Commerce and Homeland Security to “investigate the feasibility” of creating a so-called External Revenue Service to collect revenue from tariffs on foreign sources. Tariffs (which are paid by importers) are currently collected by U.S. Customs and Border Protection under Homeland Security. The president has not clarified whether his new system would absorb those responsibilities. There is an April deadline for this review. 


The Trump Administration also announced several Trade-related Administration Appointments/Interim Appointments: 


  • Benjamine Huffman was named interim DHS Secretary. 
  • Christopher Landau was named Deputy Secretary of State, replacing Kurt Campbell. This position serves the “trade” function within the Department of State. 
  • Rodney Scott was named interim Commissioner of U.S. Customs and Border Protection.