On January 20th, President Donald Trump issued the America First Trade Policy, signaling a return to an aggressive stance on trade designed to prioritize American businesses, workers, and economic security. The policy builds on previous trade strategies from his first administration, with a renewed focus on reducing trade deficits, reshaping trade agreements, strengthening enforcement, and bolstering domestic manufacturing.
This shift will have far-reaching implications for importers, exporters, and supply chains in general. In this article, we’ll outline key elements of this trade policy and how it is expected to shape the global trade landscape moving forward.
Key Directives of the America First Trade Policy
1. Investigation of Trade Deficits & Potential Global Tariff
The administration is launching a comprehensive investigation into the causes of persistent U.S. trade deficits, particularly with major trading partners. This review will examine:
- Manufacturing imbalances that have led to reliance on foreign production.
- Foreign government subsidies and their impact on global competition.
- Currency policies that give certain countries an unfair advantage.
A key proposal under consideration is a “Global Supplemental Tariff,” which would apply additional duties to imports from countries with significant trade surpluses with the U.S.
2. Creation of an External Revenue Service (ERS) for Trade Enforcement
The administration is exploring the establishment of an External Revenue Service (ERS), a dedicated agency responsible for:
- Collecting tariffs and duties to ensure full enforcement.
- Investigating customs fraud and undervaluation schemes.
- Enhancing trade compliance oversight to prevent companies from circumventing U.S. trade laws.
This agency would operate under the Department of the Treasury, working alongside Customs and Border Protection (CBP) and the Department of Commerce.
3. Reevaluating & Renegotiating U.S. Trade Agreements
- The United States-Mexico-Canada Agreement (USMCA) is under review for possible renegotiation or withdrawal if it is deemed unfair to U.S. industries.
- The World Trade Organization (WTO) is also being reassessed, with the potential for the U.S. to impose unilateral trade measures if WTO decisions are perceived as harmful to American interests.
- The review of bilateral trade agreements will prioritize those that provide clear economic benefits for American workers and manufacturers.
4. Targeting Unfair Trade Practices & Foreign Subsidies
- The U.S. Trade Representative (USTR) will launch a broad review of foreign trade policies, tariffs, and non-tariff barriers that put American businesses at a disadvantage.
- Dumping and countervailing duty investigations will be expanded, especially in sectors like steel, aluminum, and technology.
- Stronger retaliation against foreign subsidies that distort global competition, particularly those from China and the European Union.
5. Currency Manipulation Crackdown
The Department of the Treasury has been directed to identify and take action against countries engaging in currency manipulation.
- The administration will name specific trading partners that artificially devalue their currencies to boost exports at the expense of U.S. industries.
- Possible countermeasures include new tariffs, financial restrictions, and direct intervention in currency markets.
6. Reevaluating the $800 De Minimis Exemption
Currently, imports valued at $800 or less can enter the U.S. duty-free under the de minimis exemption.
- The administration is reviewing whether to reduce this threshold to prevent foreign companies from exploiting loopholes.
- This change could impact e-commerce businesses and importers that rely on small parcel shipments, particularly from China.
7. Strengthening Federal Procurement & “Buy American” Rules
A key aspect of this policy is the reinforcement of “Buy American, Hire American” initiatives:
- Federal procurement rules will be tightened to prioritize American-made products in government contracts.
- The administration may raise domestic content requirements to further limit reliance on foreign goods.
- Incentives for reshoring key industries—such as pharmaceuticals, semiconductors, and defense manufacturing—will be expanded.
8. Exploring New Trade Agreements
While many existing trade agreements are under review, the administration has signaled openness to bilateral deals that offer strong benefits to the U.S.
- Future agreements may focus on specific sectors or industries rather than broad, multi-country trade deals.
- Countries that engage in reciprocal and fair trade practices will be prioritized for negotiations.
What This Means for U.S. Importers & Exporters
The America First Trade Policy marks a fundamental shift in U.S. trade strategy, with significant implications for businesses:
Higher Tariffs & Supply Chain Disruptions
- The likelihood of additional tariffs on goods from multiple countries could increase costs across various industries. This is evident with Trump’s recent announcement of increased tariffs on Canada, Mexico, and China.
- Businesses with complex global supply chains may need to rethink sourcing strategies.
Stricter Customs Compliance & Trade Enforcement
- Companies should expect increased scrutiny of imports, especially related to country of origin claims, trade compliance documentation, and valuation accuracy.
- The de minimis exemption review could impact companies that rely on small-value shipments for cost-effective importing.
Potential Renegotiation of Key Trade Agreements
- If the USMCA is renegotiated or altered, businesses with operations in Canada and Mexico could see changes to tariffs, labor requirements, or rules of origin.
- New trade agreements may open opportunities in certain markets but could also introduce new compliance requirements.
Opportunities for Domestic Manufacturing & Reshoring
- Companies with U.S.-based production may benefit from Buy American policies and increased government procurement opportunities.
- Incentives for reshoring manufacturing operations could present long-term advantages for certain industries.
We are closely monitoring these developments to provide our clients with the most up-to-date information and strategies. Whether you need guidance on tariff mitigation, compliance strategies, supply chain adjustments, or customs requirements, our trade specialists are here to help.