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President Donald Trump began an overhaul of U.S. Trade Policy just after being sworn into office on January 20, 2025. The administration issued a memorandum outlining the President’s “America First” trade policies.

For a more detailed explanation of the directives in the America First memo, please see this post. The memo directs the Department of Commerce, Department of Treasury, and the Office of the United States Trade Representative, along with other federal agencies, to begin conducting investigations into potentially unfair or unbalanced trade on behalf of U.S. trading partners.

The agencies were also directed to investigate more specific concerns regarding China pertaining to economic security risks. The agencies will compile comprehensive reports, due to the Trump Administration by April 1, 2025.

In addition to the general investigations, the memo directs the agencies to investigate illegal migration and fentanyl coming from Canada, Mexico, and China. President Trump stated in a press conference on January 21st that he will “probably” impose 10% tariffs on China starting on February 1, 2025. To do so, the President could invoke his powers under the International Economic Emergency Powers Act (IEEPA). IEEPA (50 U.S.C. 1701 et seq.) authorizes the President to regulate imports by declaring a national economic emergency with respect to an “unusual or extraordinary” threat to national security, foreign policy, or the domestic economy. When invoked, IEEPA grants the President broad authority to impose remedies as he sees fit until the emergency has been handled. 

While no President has used IEEPA to impose tariffs, its precursor statute, the Trading with the Enemy Act of 1917 (TWEA) was invoked by President Nixon in 1971 to impose a 10% tariff on imports into the United States in response to a monetary emergency.

In the same vein, President Trump stated that his administration is “still thinking” of imposing 25% tariffs on Canada and Mexico beginning February 1st. The President declared a national emergency with respect to immigration at the southern border, but it remains to be seen whether he will use the powers granted by IEEPA to impose tariffs sooner than April 1st. The President alluded to the national emergencies he would declare against each country, fentanyl being an issue in all three countries and immigration being the primary concern with Canada and Mexico.

President Trump’s memorandum also calls on the agencies to review existing free trade agreements (FTAs) and identify nations who are potential candidates for FTAs with the United States. Specifically, the Office of the United States Trade Representative (USTR) will begin the public consultation process for the United States-Mexico-Canada Free Trade Agreement (USMCA), signaling the beginning of the U.S.’s review of the FTA, due for renegotiation in 2026.

Finally, President Trump called for a regulatory moratorium, asking agencies to consider postponing the enactment of rules that have yet to take effect and/or publishing of new rules in the Federal Register. Further, the order requires that all agencies should immediately withdraw any rules that were sent to the Office of Federal Register and not published as of January 20, 2025.

The freeze is set to last for 60 days. All rules subject to the freeze and those enacted after will be subject to a new requirement that only a department or agency head appointed by the President may review and approve rules before they are sent to the Office of the Federal Register.

Late on January 25, 2025, President Trump threatened to impose 25% tariffs on goods coming from Colombia after the Colombian government refused to accept a plane of deportees on its way from the United States. The Colombian president announced potential retaliatory tariffs on January 26, but, that evening, the two countries reached an agreement: Colombia will accept the deportees, and the U.S. will not implement tariffs.

Husch Blackwell is monitoring developments relating to the new Administration’s trade policy and agenda closely and is committed to providing the most accurate and up-to-date information as things unfold.

If you have any questions or concerns, please contact our International Trade and Supply Chain Team.