President Trump Issues America First Trade Policy Memorandum—Analysis and Section Summary
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President Trump Issues America First Trade Policy Memorandum—Analysis and Section Summary

Brownstein Client Alert, Jan. 21, 2025

President Donald Trump issued an “American First Trade Policy Memorandum” as part of wide-ranging executive actions on Jan. 20, his first day in office. The memorandum calls for a series of reviews of U.S. trade policy and investigations of trade imbalances and unfair trade practices. President Trump’s goal is to “establish[ing] a robust and reinvigorated trade policy that promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and—above all—benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.”

The memorandum is less aggressive than the president’s campaign trail pledges to swiftly implement significant new tariffs on imports from China and other countries around the world. However, far from repudiating the threat of significant new tariffs, the memorandum effectively embraces tariffs as both a negotiating tactic and a revenue source while laying out the initial steps of a process through which the Trump administration could impose new levies. The memorandum suggests that these new tariffs could come through authorities that President Trump utilized in his first term, including Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974, as well as untested authorities such as the International Emergency Economic Powers Act (IEEPA).

The memorandum calls for a review of whether China is “acting in accordance” with the trade deal reached during the first Trump administration as well as the effect of current tariffs and “other acts, policies, and practices by the PRC that may be unreasonable or discriminatory …” It also calls for reviews of the de minimis tariff exemption and legislation regarding “Permanent Normal Trade Relations” with China.

President Trump has left the threat of a “global supplemental tariff” on the table, saying during the signing ceremony that he is “not ready for that yet.” Instead, the memorandum calls for an investigation to identify “any unfair trade practices by other countries and recommend appropriate actions to remedy such practices.”

In relation to Canada and Mexico, the memorandum begins the process of preparing for the review of the United States-Mexico-Canada Agreement (USMCA) due in July 2026.

In terms of timing, the memorandum calls for many of the reviews and investigations to be complete by April 1, 2025, implying that that new tariffs on both China and other countries could come in the late spring or early summer. However, in unscripted remarks during the signing ceremony, President Trump said he may impose a 25% tariff on Canadian and Mexican goods on Feb. 1 to combat the influx of illegal immigrants and fentanyl—raising both the prospect that the administration could impose new tariffs before the reviews are complete and that it will use tariffs to pursue broader policy goals. The next day, the President followed up with a similar threat to impose a 10% tariff on imports from China on Feb. 1, also in response to fentanyl shipments.

Beyond tariffs, the memorandum calls for reviews of U.S. export controls, the Biden administration’s executive order (EO) on outbound investment (EO 14105) and the Office of Information and Communication Technology and Services’ (ICTS) recent rulemaking on connected vehicles, including consideration of whether controls on ICTS transactions should be expanded to account for additional connected products.

The memorandum also directs various agencies to consider the feasibility of establishing “an External Revenue Service (ERS) to collect tariffs, duties, and other foreign trade-related revenues.”

The following is a section-by-section summary of the American First Trade Policy memorandum.

Sec. 1. Background.

Reestablishes a trade policy that promotes investment and productivity, enhances U.S. industrial and technological advantages, defends economic and national security and benefits American stakeholders.

Sec. 2. Addressing Unfair and Unbalanced Trade.

(a) Directs the Secretary of Commerce, in consultation with the Secretary of the Treasury and the United States Trade Representative (USTR), to investigate the causes and implications of trade deficits and propose solutions, such as a global supplemental tariff.

(b) Directs the Secretary of the Treasury, in consultation with the Secretary of Commerce and the Secretary of Homeland Security, to investigate the feasibility of establishing an External Revenue Service (ERS) to collect tariffs, duties and other foreign trade-related revenues.

(c) Directs USTR, in consultation with the Secretary of the Treasury, the Secretary of Commerce and the Senior Counselor for Trade and Manufacturing, to identify any unfair trade practices by other countries and recommend appropriate solutions. This section specifically identifies the International Emergency Economic Powers Act (IEEPA) as a solution (U.S.C. Title 50, Sec. 1701).

(d) Directs USTR to begin the public consultation process with respect to United States-Mexico-Canada Agreement (USMCA) in preparation for the July 2026 review. USMCA specifies that the 2026 review starts a 10-year clock for expiration of the agreement. To prevent expiration in 2036, the parties must submit notifications at or after the 2026 review approving the renewal of the USMCA for another 16-year term. To prepare for renegotiations USTR is required to initiate public consultations on the review at least 270 days before the review (around October 2025). Additionally, at least 180 days before the review (around January 2026), USTR must submit a report to Congress outlining its plans.

(e) Directs the Secretary of the Treasury to review the policies of major U.S. trading partners regarding the rate of exchange between the U.S. dollar and the currencies of trading partners and recommend measures against currency manipulation or misalignment that prevents effective balance of payments adjustments.

(f) Directs USTR to review existing trade agreements and recommend any necessary changes to achieve or maintain mutual advantages.

(g) Directs USTR to identify countries with which to negotiate trade agreements on a bilateral or sector-specific basis to obtain to enhance export access for various American stakeholders.

(h) Directs the Secretary of Commerce to review current antidumping and countervailing duty (AD/CVD) laws, including transnational subsidies, cost adjustments, affiliations and “zeroing,” to ensure compliance from foreign entities.

(i) Directs the Secretary of the Treasury, the Secretary of Commerce, the Secretary of Homeland Security, the Senior Counselor for Trade and Manufacturing and the USTR to assess whether de minimis imports result in the loss of tariff revenues and in an influx of counterfeit and illicit goods. The multiagency review will also make recommendations on modifications to prevent loss of revenue and the continued importation of illegal goods.

(j) Directs the Secretary of the Treasury, in consultation with the Secretary of Commerce and USTR, to investigate any discriminatory or extraterritorial taxes on U.S. citizens or corporations by foreign countries. A similar provision is included in President Trump’s Memorandum on The Organization for Economic Co-operation and Development (OECD) Global Tax Deal (Global Tax Deal).

(k) Directs USTR, in consultation with the Senior Counselor for Trade and Manufacturing, to review the impact of all trade agreements, including the World Trade Organization Agreement on Government Procurement, and investigate if the agreements undermine the Buy American and Hire American (EO 13788). USTR should then make recommendations on how to ensure trade agreements support domestic manufacturers and workers.

Sec. 3. Economic and Trade Relations with the People’s Republic of China (PRC).

(a) Directs USTR to determine whether China is complying with the U.S.-China Phase One Agreement and recommend actions, including the imposition of tariffs.

(b) Directs USTR to assess the most recent Section 301 investigation into China’s unfair trade practices and determine whether additional tariffs should be implemented to support supply chain resiliency and prevent transshipment. USTR should also analyze the costs associated with China’s unfair trade practices and recommend solutions.

(c) Directs USTR to investigate potentially discriminatory actions by the PRC that restrict U.S. commerce and recommend appropriate actions, including, but not limited to actions authorized by the U.S. Trade Act of 1974 (Title 19, Sec. 2411).

(d) Directs the Secretary of Commerce and USTR to assess legislative proposals regarding Permanent Normal Trade Relations (PNTR) with the PRC and recommend changes.

(e) Directs the Secretary of Commerce to assess the treatment of U.S. intellectual property rights in the PRC and recommend measures for balanced treatment.

Sec. 4. Additional Economic Security Matters.

(a) Directs the Secretary of Commerce, in consultation with the Secretary of Defense and the heads of any other relevant agencies, to conduct a review of the U.S. industrial and manufacturing base to assess whether certain imports threaten national security under Sec. 232 of the Trade Expansion Act of 1962 (Title 19, Sec. 1862).

(b) Directs the Assistant to the President for Economic Policy, in consultation with the Secretary of Commerce, USTR and the Senior Counselor for Trade and Manufacturing, to review the efficacy of current import adjustment measures under Sec. 232 of the Trade Expansion Act of 1962 (Title 19, Sec. 1862) for steel and aluminum.

(c) Directs the Secretary of State and the Secretary of Commerce to review the U.S. export control system, including the extent to which it protects U.S. technology, and recommend modifications to combat national security threats and incentivize compliance by foreign nations.

(d) Directs the Secretary of Commerce to review the Office of Information and Communication Technology and Services (ICTS) final rule on connected vehicles and determine whether the rule should be expanded.

(e) Directs the Secretary of the Treasury, in consultation with the Secretary of Commerce, to review EO 14105, Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern, and the related rulemaking, Provisions Pertaining to U.S. Investments in Certain National Security Technologies and Products in Countries of Concern—often referred to as the “Outbound Investment” EO. The secretaries should recommend whether the EO should be rescinded, modified or replaced, whether the rulemakings sufficiently address national security threats and whether additional modifications to the Outbound Investment Security Program are necessary.

(f) Directs the Office of Management and Budget Director to determine whether financial contributions made by foreign governments negatively affect the U.S. federal procurement process and to recommend policies to combat any distortions.

(g) Directs the Secretary of Commerce and the Secretary of Homeland Security to evaluate illegal immigration and the influx of fentanyl from Canada, Mexico, the PRC and any other relevant countries, and to recommend appropriate trade and national security measures to resolve these “emergencies.”

Sec. 5. Reports.Provides the following deadlines for unified reports from various agencies:

(a) Secs. 2(a), 2(h), 3(d), 3(e), 4(a), 4(b), 4(c), 4(d), and 4(g): The Secretary of Commerce must deliver a report by April 1, 2025;

(b) Secs. 2(b), 2(e), 2(i), 2(j), and 4(e): The Secretary of the Treasury must deliver a report by April 1, 2025;

(c) Secs. 2(c), 2(d), 2(f), 2(g), 2(k), 3(a), 3(b), and 3(c): USTR must deliver a report by April 1, 2025; and

(d) Sec. 4(f): The Director of the Office of Management and Budget must deliver a report by April 30, 2025.


THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING NEW TRUMP ADMINSTRATION GUIDENCE ON TRADE POLICY. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.

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