-
Email
Linkedin
Facebook
Twitter
Copy Link
Key goals: The stated objectives of the plan include correcting longstanding trade imbalances, reducing the US trade deficit, and increasing US competitiveness. Key actions: The Administration’s memorandum instructs the Department of Commerce and Office of the US Trade Representative to investigate and propose remedies for imbalances, with reports due in April. Like with other trade activities over the last month, it’s unclear whether tariffs and other actions could be announced before or pending the results of such investigations. This is a large undertaking, as the US is the world’s second largest trading nation, behind only China, with relations with more than 200 trading partners globally. The US also has comprehensive free trade agreements in force with 20 countries. Tariffs are only part of the analysis: The memorandum details that it’s not only tariffs that will be examined when looking at reciprocal US actions. Also considered will be extraterritorial taxes, such as value-added taxes (VAT), subsidies countries provide to their domestic industries, regulatory requirements on US companies operating overseas, limitations to market access for US companies, and other "non-tariff barriers” that would impact US competitiveness. The TCB take: Businesses should consider identifying sources for products and inputs from more than one country and continue evaluating their supply chains for possible diversification and orientation. This might be particularly valuable if supply chains involve countries the US is running large trade deficits with, as listed in the chart below.The White House's Game Plan for Achieving Trade Balance...with 200 Partners
The White House recently announced its “Fair and Reciprocal Plan” regarding trade. The plan details imposing reciprocal trade actions, including tariffs, against US trading partners that the Administration determines to engage in unfair practices.
Members of The Conference Board get exclusive access to Trusted Insights for What’s Ahead® through publications, Conferences and events, webcasts, podcasts, data & analysis, and Member Communities.
Cutting Discretionary Spending to Offset Higher Prices
March 28, 2025
Auto Makers Hit a Tariff Speedbump
March 27, 2025
Administration acts with Congress to reverse methane fee
March 25, 2025
Fed Keeps Cutting Bias amid “Transitory” Tariff Inflation
March 19, 2025
Retail Sales Show Consumers Are More Frugal amid Uncertainty
March 17, 2025
The EU's Retaliatory Tariffs Will Hit Beef, Bourbon and More
March 14, 2025
Charts
The proliferation of easy-to-use generative AI requires that policymakers and business leaders each play an important role.
LEARN MORECharts
A hyperpolarized environment, diminished trust in our nation’s leaders.
LEARN MOREIN THE NEWS
Steve Odland: Tariffs to cost U.S. manufacturers $144 billion annually
February 03, 2025
PRESS RELEASE
CED Maps Out 2025 Policy Plan for New President and Congress
January 23, 2025
IN THE NEWS
If the election is contested again in November, will corporate leaders push…
October 21, 2024
Commentary and Letters
The Biggest Problem Trump and Harris Aren’t Talking About
October 15, 2024
Commentary and Letters
Letter to Presidential Candidates Regarding US Fiscal Health
October 04, 2024
IN THE NEWS
Public & private sectors must prepare for AI-powered election attacks
October 31, 2023