Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits
1. Purpose
This memorandum investigates large and persistent U.S. goods trade deficits and their associated economic and national security risks, aiming to address these deficits through strategic actions.
2. Key Actions And Directives
- Impose Additional Tariffs: Impose a starting rate of 10% ad valorem duties on imports from trading partners.
- Investigate Trade Deficits: Conduct investigations into the causes of trade deficits and recommend measures based on findings.
- Enforce Tariff Measures: Authorize the Secretary of Commerce and U.S. Trade Representative to implement and enforce tariff actions.
3. Important Points
- Legal Authority Cited: The memorandum cites the International Emergency Economic Powers Act, the National Emergencies Act, the Trade Act of 1974, and U.S. Code Title 3 as its legal foundation.
- Causes of Trade Deficits: Key causes include lack of reciprocity, disparate tariffs, non-tariff barriers, and policies suppressing wages in trading partner countries.
- Impact of Past Policies: Previous trade policies emphasizing reciprocity have not achieved balanced trade, contributing to ongoing trade deficits.
- Consequences for National Security: Dependence on foreign manufacturers for defense supplies threatens U.S. military readiness and supply chain security.
- U.S. Manufacturing's Importance: Manufacturing contributes significantly to the U.S. GDP and is crucial for productivity, innovation, and export strength.
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