Trump to sign two executive orders cracking down on trade abuses

NTD Staff
By NTD Staff
March 31, 2017US News
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Trump to sign two executive orders cracking down on trade abuses
FILE- US President Donald Trump makes remarks as he hosts a listening session with the Fraternal Order of Police in the Roosevelt Room of the White House on March 28, 2017 in Washington, DC. (Photo by Ron Sach-Pool/Getty Images)

WASHINGTON (AP) — 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.

On Friday, 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. Deficits in trade 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 obligations, 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.

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, 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 of commitments in trade pacts. 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 for talks at his Mar-a-Lago estate in Florida.

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.”

“American companies must be prepared to look at other alternatives,” he wrote. The U.S. deficit with China was $347 billion last year.

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

“Nothing we’re saying tonight is about China. Let’s not make this a China story. This is a story about trade abuses, this is a story about an under-collection of duties,” he said.

The U.S. trade deficit totaled $502.3 billion last year, a slight increase from 2015, according to the Commerce Department. The trade gap rose to its highest level since 2012 last year, though the imbalance remains below its 2006 high, shortly before the Great Recession struck.

Both exports abroad and imports into the United States fell in 2016, but exports declined by a greater sum in part due to a stronger dollar making American-made goods and services more expensive overseas.

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