The “America First Trade Policy” recently outlined by President Donald Trump aims to strengthen the U.S. economy, bolster national security, and reduce reliance on foreign nations for critical needs. The policy introduces significant changes for global trade professionals that could affect trade compliance practices. Here are the key takeaways.
Addressing Trade Deficits & Unfair Practices
Key measures include:
Trade Deficit Analysis: Agencies will analyze the causes of persistent trade deficits and recommend measures like tariffs that could impact costs for importers and exporters.
Enhanced Revenue Collection: The proposed creation of an External Revenue Service (ERS) signals increased scrutiny on tariff classifications and duty payments.
Unfair Trade Practices Review: New penalties or tariffs could arise, especially in industries heavily dependent on imports.
USMCA Review: Adjustments to the USMCA ahead of its 2026 review could affect compliance requirements for cross-border trade.
Antidumping and Countervailing Duties: Stricter enforcement of AD/CVD laws will require companies to ensure compliance when importing regulated products.
Trade Relations with China
The policy takes a hard stance on economic relations with China:
Trade Agreement Review: Reevaluation of agreements could lead to new tariffs or restrictions.
IP and Technology Protections: Enhanced measures will address unfair practices related to intellectual property and supply chain circumvention.
Bilateral Measures: Investigations into discriminatory practices may affect companies sourcing from or exporting to China.
Companies trading with China should prepare for evolving restrictions and prioritize supply chain transparency.
Broader Economic Security Measures
Other measures impacting trade compliance include:
Export Control Modernization: Strengthened regulations will prevent strategic goods from reaching adversaries.
Steel and Aluminum Tariffs: A review could impact material costs and sourcing strategies.
Duty-Free Exemption Reforms: Potential $800 de minimis exemption changes may increase reporting requirements.
What This Means for Trade Compliance
The “America First Trade Policy” introduces new complexities for U.S.-based importers and exporters. To stay compliant:
Strengthen Documentation: Accurate records will help navigate increased scrutiny.
Monitor Trade Agreements: Stay informed about changes to agreements and relationships with key trading partners.
Enhance Supply Chain Transparency: Evaluate suppliers and sourcing practices to ensure compliance.
Leverage Technology: Use tools to automate classification, valuation, and compliance monitoring.
What’s Next in April 2025?
As the “America First Trade Policy” evolves, several critical developments are anticipated in April 2025 that will further shape the trade compliance landscape:
Proposed ERS Implementation Timeline: Agencies must provide details about the External Revenue Service’s rollout, including business compliance requirements.
USMCA Adjustments Announced: Preliminary recommendations regarding updates to the USMCA ahead of its 2026 review may be released, giving companies insight into potential changes.
New Tariff Announcements: Industries heavily reliant on imports could face additional duties as part of deficit reduction strategies.
Enhanced China Trade Restrictions: Further updates on tariffs, export controls, and intellectual property enforcement targeting China will likely be unveiled.
The “America First Trade Policy” underscores the need for robust compliance practices to adapt to new regulations and enforcement measures. Copper Hill is here to help. Contact us to learn how our services and cutting-edge trade compliance software can support your organization in this evolving trade landscape.
