Trump targets trade abuse
WASHINGTON — President Donald Trump talked tough on trade on the campaign trail, vowing to renegotiate a slew of major deals and to label China a currency manipulator on “Day One.”
Now his administration appears to be taking a more cautious approach.
Today the president will sign a pair of executive orders aimed at cracking down on trade abuses, according to top administration officials. The first calls for the completion of a large-scale report to identify “every form of trade abuse and every non-reciprocal practice that now contributes to the U.S. trade deficit,” said Commerce Secretary Wilbur Ross.
Officials will have 90 days to produce a country-by-country, product-by-product report that will serve as the basis of future decision-making by the administration on trade-related issues, Ross told reporters at a Thursday night briefing.
“It will demonstrate the administration’s intention not to hip-shoot, not to do anything casual, not to do anything abruptly, but to take a very measured and analytical approach, both to analyzing the problem and therefore to developing the solutions for it,” he said.
While Trump has long argued that trade deficits imperil U.S. workers, Ross cautioned that they aren’t necessarily all bad. In some cases, for instance, the U.S. simply can’t produce enough of a product to meet domestic demand. In others, foreign countries may make products substantially cheaper or better than in the U.S. They can also mean that foreign countries and entities are investing in U.S. assets.
Still, Ross argued, the U.S. has the lowest tariff rates of any developed country. The report, he said, will examine whether deficits are being driven by things like cheating, specific trade agreements, lax enforcement and World Trade Organization rules.
Ross said the report would not focus extensively on currency manipulation, which is under the purview of the U.S. Treasury Department, despite Trump’s campaign rhetoric.
The second order will focus on stepping up the collection of anti-dumping and countervailing duties, which are levied against foreign governments that subsidize products so they can be sold below cost.
Peter Navarro, the director of the White House National Trade Council, said the U.S. is leaving billions of dollars on the table as a result of lax enforcement. The order will establish more effective bonding requirements, among other measures.
The orders come a week before the president is scheduled to host Chinese President Xi Jinping at his Florida Mar-a-Lago estate.
Trump tweeted Thursday evening that his first meeting with the Chinese leader would “be a very difficult one in that we can no longer have massive trade deficits ... and job losses.”
