Trump executive orders tackle trade abuses ahead of meeting with Chinese president

Cheryl Sanders
March 31, 2017

"American companies must be prepared to look at other alternatives".

President Trump will sign two executive orders attacking the nation's trade deficit on Friday, targeting trade agreements, intellectual property theft and $2.8 billion in unpaid duties.

The order comes a week before Trump meets Chinese President Xi Jinping and is likely to be seen as a warning shot across Beijing's bow.

Peter Navarro, the director of Mr Trump's National Trade Council, said that "for the first time, we're looking comprehensively at the source of what has been a large and persistent trade deficit that has contributed to job losses, the loss of our manufacturing base and other things".

The one of the orders will focus on a major review of the reasons behind United States ever-growing deficit, as the other will address issues of related to antidumping and countervailing duties.

"The the anti-dumping consists of dealing with countries that are actually violating the rules". But he said in some cases, currencies can become misaligned from their traditional valuations unintentionally, citing the Mexican peso's sharp decline late previous year after Trump's election.


But foreign trade has also helped reduce prices for consumers.

A trade surplus occurs when a country exports more than it imports from another country.

He emphasized that the comprehensive report would be the first of its kind and would take an analytic deep dive into the issues the USA faces with its trading partners.

The study also will examine the effects of trade deals that have failed to produced forecast benefits, Ross said.

Commerce Secretary Wilbur Ross said the administration will use the report when it is finished in 90 days as a "basis for decision making".

Commerce Secretary Wilbur Ross and National Trade Council Director Peter Navarro said the Trump administration will produce a sweeping report on the cause of US trade deficits as well as plans to improve trade enforcement and the collection of billions in import taxes as part of the effort to bolster USA manufacturing.


"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", he said.

Navarro reprimanded one reporter who asked him about China, after he had just noted that China accounts for "at least a third" of the dumping abuses against the U.S. China, the largest source of the US's trade deficit, has repeatedly run afoul of the US's anti-dumping laws, and Trump has repeatedly accused the country of hurting the U.S. economy through unfair trading practices.

The others listed were: Japan, Germany, Mexico, Ireland (Other OTC: IRLD - news), Vietnam, Italy, South Korea, Malaysia, India, Thailand, France, Switzerland, Taiwan (Taiwan OTC: 6549.TWO - news), Indonesia and Canada.

The second trade order to be signed by Trump is aimed at halting the non-payment and under-collection of anti-dumping and anti-subsidy duties the United States slaps on many foreign goods.

Navarro said the order directs the Commerce and Homeland Security departments to close these gaps by imposing tougher bonding requirements to ensure duty collections and new legal requirements for assessing risks associated with importers.

But Navarro insisted the orders had nothing to do with the visit or sending a message to China.


Other reports by iNewsToday

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