America First Trade Policy

January 20, 2025
Presidential Actions

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Action Summary

  • America First Trade Policy Overview: Reaffirms a trade policy centered on American economic revitalization, national security, and support for workers, manufacturers, farmers, ranchers, and businesses.
  • Addressing Unfair and Unbalanced Trade:
    • Trade Deficit Investigations: The Secretary of Commerce, in consultation with Treasury and the USTR, will examine persistent trade deficits and recommend measures such as global supplemental tariffs.
    • External Revenue Service (ERS): Assessment by the Treasury (with Commerce and Homeland Security) to design a system for collecting tariffs and trade-related revenues.
    • Review & Remedy Unfair Trade Practices: USTR to identify and act on unfair practices by foreign countries under applicable legal authorities.
    • USMCA Consultation: Initiate public consultations and assess the agreement’s impact on domestic sectors ahead of the July 2026 review.
    • Exchange Rate & Currency Manipulation: Treasury to review trading partners’ currency policies and recommend measures against manipulative practices.
    • Trade Agreement Revisions: USTR to review existing agreements and recommend revisions for reciprocal and advantageous concessions.
    • Antidumping/Countervailing Duty Reviews: Commerce to examine AD/CVD laws and procedures to ensure compliance and address issues like transnational subsidies and “zeroing.”
    • Duty-Free Exemption Concerns: Joint assessment on the de minimis exemption’s impact on tariff revenues and risks from counterfeit and illicit imports.
    • Discriminatory Tax Investigations: Treasury, Commerce, and USTR to investigate any instances of extraterritorial or discriminatory tax measures against U.S. entities.
    • Federal Procurement Impact: USTR to evaluate how trade agreements affect Buy American initiatives in federal procurement.
  • Economic and Trade Relations with the People’s Republic of China (PRC):
    • Compliance and Tariffs: USTR to review the U.S.-PRC Economic and Trade Agreement and determine if tariffs or other actions are warranted.
    • Section 301 Review: Evaluate findings from the report on China’s technology transfer and intellectual property practices, considering further tariff modifications.
    • Unfair Practices and Discrimination: USTR to investigate other discriminatory trade practices by the PRC and recommend responsive actions.
    • Legislative and Intellectual Property Reviews: Assess Permanent Normal Trade Relations proposals and ensure reciprocal treatment of U.S. intellectual property rights.
  • Additional Economic Security Matters:
    • Industrial and Manufacturing Base Review: Commerce, Defense, and other relevant agencies to assess the national security risks posed by imports.
    • Steel and Aluminum Import Exemptions: Evaluation of current import adjustment measures and recommendations for enhanced security.
    • Export Controls: State and Commerce to review and propose modifications to the export control system to safeguard technological advantages and close loopholes.
    • Connected Vehicles and ICTS: Commerce to examine rulemaking on connected vehicles and assess if ICTS controls need expansion.
    • Investment Security Policies: Treasury, with Commerce and others, to consider modifications to Executive Order 14105 and the associated outbound investment controls.
    • Foreign Subsidies in Procurement: OMB to assess and propose actions addressing distortions from foreign government subsidies on federal procurement.
    • Border and Drug Flow Concerns: Commerce and Homeland Security to evaluate unlawful migration and fentanyl flows from key jurisdictions and recommend measures.
  • Reporting Requirements:
    • Reports from various reviews and investigations to be submitted by the Secretary of Commerce, Treasury, and USTR by April 1, 2025, with OMB’s report due by April 30, 2025.
  • General Provisions:
    • Implementation must be consistent with existing legal authorities, appropriations, and does not create enforceable rights or benefits against the U.S. government.

Risks & Considerations

  • The “America First Trade Policy” emphasizes reducing trade deficits and protecting national security, which could lead to increased tariffs and trade barriers. This may impact Vanderbilt University’s international collaborations and partnerships, particularly those involving research and development with foreign institutions.
  • Investigations into unfair trade practices and potential tariff implementations could affect the cost and availability of imported goods and services, which may impact the university’s procurement processes and budget allocations.
  • The focus on intellectual property rights, especially concerning the PRC, may influence Vanderbilt’s research activities and collaborations with Chinese institutions, potentially requiring increased compliance measures and adjustments in intellectual property management.
  • Changes in trade agreements and export controls could affect the university’s ability to engage in international research collaborations and exchange programs, necessitating a review of current agreements and partnerships.
  • The emphasis on national security and economic security reviews may lead to stricter regulations and oversight, impacting the university’s operations, particularly in areas related to technology and data management.

Impacted Programs

  • Vanderbilt’s Office of International Affairs may need to reassess and potentially renegotiate international partnerships and agreements to align with new trade policies and regulations.
  • The School of Engineering could be affected by changes in export controls and technology transfer regulations, impacting research projects and collaborations with international partners.
  • The Owen Graduate School of Management may see increased demand for expertise in trade policy and international business, presenting opportunities for curriculum development and research initiatives.
  • The Office of Research might need to implement additional compliance measures to ensure adherence to new intellectual property and trade regulations, particularly in collaborations with foreign entities.

Financial Impact

  • Potential increases in tariffs and trade barriers could lead to higher costs for imported goods and services, affecting the university’s operational budget and procurement strategies.
  • Changes in trade agreements and export controls may impact funding opportunities for international research collaborations, requiring adjustments in grant application strategies and partnerships.
  • Vanderbilt may need to allocate resources towards compliance and legal expertise to navigate the evolving trade and intellectual property landscape, potentially impacting financial planning and resource allocation.

Relevance Score: 4 (The policy presents a need for potential major changes or transformations in international collaborations and compliance measures.)

Key Actions

  • Vanderbilt’s Office of Federal Relations should monitor developments in trade policy, particularly those related to tariffs and trade agreements, to assess potential impacts on research funding and international collaborations. Engaging with policymakers to advocate for policies that support academic and research interests could be beneficial.
  • The Vanderbilt Center for Technology Transfer and Commercialization should evaluate the implications of changes in intellectual property rights and export controls, especially concerning collaborations with Chinese entities. This will help ensure compliance and protect the university’s intellectual property.
  • Vanderbilt’s Economic and Business Research Center should conduct analyses on the potential economic impacts of the “America First Trade Policy” on local and national economies. This research can provide valuable insights for strategic planning and community engagement.
  • The Vanderbilt Law School should explore the legal ramifications of new trade policies and their alignment with international law. Offering expertise in trade law could position the university as a thought leader in this area.

Opportunities

  • The focus on enhancing the United States’ industrial and technological advantages presents an opportunity for Vanderbilt’s School of Engineering to engage in research and development projects that align with national priorities. Collaborating with industry partners could lead to new funding and innovation opportunities.
  • Vanderbilt can leverage its expertise in international relations and economics to host forums and discussions on the implications of the “America First Trade Policy.” This could enhance the university’s reputation as a center for policy analysis and debate.
  • The emphasis on protecting American intellectual property rights offers an opportunity for Vanderbilt’s Owen Graduate School of Management to develop programs focused on intellectual property management and innovation strategy, attracting students interested in these critical areas.

Relevance Score: 3 (The executive order requires some adjustments to processes and procedures, particularly in areas related to international collaborations and intellectual property management.)

Average Relevance Score: 3.6

Timeline for Implementation

  • April 1, 2025: Unified reports covering Sections 2(a), 2(h), 3(d), 3(e), 4(a), 4(b), 4(c), 4(d), 4(g); Sections 2(b), 2(e), 2(i), 2(j), 4(e); and Sections 2(c), 2(d), 2(f), 2(g), 2(k), 3(a), 3(b), 3(c) are to be delivered.
  • April 30, 2025: The report from the Director of the Office of Management and Budget is to be delivered.

Relevance Score: 3

Impacted Government Organizations

  • Secretary of State: Responsible for advising on export control modifications and assessing export controls in light of national security considerations.
  • Secretary of the Treasury: Tasked with analyzing trade deficits, investigating tariff collection methods, assessing currency manipulation, and reviewing existing international tax practices.
  • Secretary of Defense: Involved in conducting a full economic and security review of the industrial and manufacturing base to address threats to national security.
  • Secretary of Commerce: Central to multiple provisions including trade deficit investigations, antidumping and countervailing duty reviews, export controls, and connected vehicles rulemaking.
  • Secretary of Homeland Security: Consulted on issues related to trade practices, security risks from imports, and managing impacts of unlawful migration and contraband flows.
  • Director of the Office of Management and Budget: Charged with assessing the impact of foreign subsidies on federal procurement and coordinating unified reporting.
  • United States Trade Representative: Leading investigations into unfair trade practices, reviewing trade agreements, and managing public consultations on trade matters.
  • Assistant to the President for Economic Policy: Consulted on reviewing import adjustment measures and overall economic policy implications related to trade.
  • Senior Counselor for Trade and Manufacturing: Advises on trade agreement impacts and the overall health of sectors such as manufacturing and agriculture.
  • Office of Information and Communication Technology and Services (ICTS): Involved by way of directive to review and potentially modify controls on connected vehicles.

Relevance Score: 3 (Between 6 and 10 agencies are directly impacted by this trade policy memorandum.)

Responsible Officials

  • Secretary of State – Responsible for reviewing and advising on modifications to U.S. export controls and policies affecting strategic adversaries.
  • Secretary of the Treasury – Tasked with investigating trade deficits, reviewing currency exchange practices, assessing tariff revenue impacts, and recommending measures to counter currency manipulation.
  • Secretary of Defense – Collaborates on economic and security reviews of the U.S. industrial base to assess national security implications of trade and industrial policies.
  • Secretary of Commerce – Charged with coordinating comprehensive reviews of trade practices, investigating antidumping and countervailing measures, and leading unified reports on multiple trade initiatives.
  • Secretary of Homeland Security – Assists in evaluating trade-related security risks, including preventing unlawful importations and mitigating national security threats associated with trade.
  • Director of the Office of Management and Budget – Responsible for assessing the impact of foreign financial contributions on federal procurement and proposing necessary regulatory or legislative adjustments.
  • United States Trade Representative – Leads investigations of unfair trade practices, reviews existing trade agreements, initiates public consultations, and coordinates negotiations with foreign nations.
  • Assistant to the President for Economic Policy – Involved in reviewing and assessing measures related to import adjustments and economic security to support the administration’s trade policy objectives.
  • Senior Counselor for Trade and Manufacturing – Provides strategic counsel on trade reviews, assists in evaluating manufacturing and trade policy impacts, and supports recommendations on industrial and economic policies.

Relevance Score: 5 (Directives affect Cabinet-level officials and key executive roles essential for national trade and security policy execution.)

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