Reciprocal Trade and Tariffs
1. Purpose
This memorandum aims to tackle the persistent trade deficit and rectify unfair trade practices by establishing a framework for equitable tariffs and addressing non-reciprocal trade arrangements.
2. Key Actions And Directives
- Investigate Non-Reciprocal Trade Arrangements: Engage with the Secretary of Commerce, United States Trade Representative, Secretary of the Treasury, Secretary of Homeland Security, and other relevant executive department heads to investigate non-reciprocal trade agreements.
- Assessment of Fiscal Impact: The Director of the Office of Management and Budget will evaluate the fiscal impacts of the memorandum within 180 days.
- Implement Fair and Reciprocal Plan: Counter non-reciprocal trading arrangements by determining equivalent reciprocal tariffs under the Fair and Reciprocal Plan.
3. Important Points
- Addressing Trade Deficit: The memorandum focuses on reducing the trade deficit which has far-reaching economic implications for the U.S. economy.
- Unfair Trade Practices: Highlights various unfair practices, including tariffs and discriminatory taxes, that hinder U.S. competitiveness in global markets.
- Value-Added Tax Definition: Clarifies the definition of a value-added tax as a consumption tax applied incrementally at each supply chain stage.
- Nontariff Barriers: Recognizes nontariff barriers as significant hurdles to trade, including measures that limit imports and exports.
- No Enforceable Rights Granted: The memorandum explicitly states that it does not create enforceable rights or benefits against the U.S. government.
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