Fact Sheet: President Donald J. Trump Announces “Fair and Reciprocal Plan” on Trade

February 13, 2025

Fact Sheets

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Action Summary

Plan Introduction: Presidential Memorandum launches the “Fair and Reciprocal Plan” aimed at restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements.
Key Objectives: Correct longstanding international trade imbalances, prioritize American workers, improve industrial competitiveness, reduce the trade deficit, and enhance economic and national security.
Trade Imbalance Examples:
- Ethanol: U.S. tariff at 2.5% vs. Brazil’s 18%, leading to a significant imbalance in trade.
- Agricultural Goods & Motorcycles: U.S. applies lower tariffs compared to countries like India, contributing to disparities.
- Shellfish & Automobiles: Unilateral trade practices where markets remain open for imports but closed to exports; notably, the EU benefits disproportionately.
Broader Trade Impact: Persistent trade deficits, with the U.S. goods deficit exceeding $1 trillion in 2024 and a substantial $40 billion deficit in agriculture.
Digital Service Taxes: Highlight of non-reciprocal digital taxes imposed by Canada and France, costing American companies over $2 billion annually.
Historical Context: Reflects on past actions such as replacing NAFTA with USMCA, tariffs on steel and aluminum, measures against Chinese unfair practices, and recent tariff leverage with Canada and Mexico to safeguard U.S. interests.

Risks & Considerations

The “Fair and Reciprocal Plan” aims to address trade imbalances by imposing reciprocal tariffs, which could lead to trade tensions and retaliatory measures from other countries. This may affect international collaborations and partnerships that Vanderbilt University has with institutions in countries impacted by these tariffs.
Changes in trade policies could influence the economic environment, potentially affecting funding for research and development, particularly in areas related to international trade, economics, and policy studies.
The focus on protecting American industries might lead to increased costs for imported goods, which could impact the university’s operational expenses, especially if it relies on imported equipment or materials for research and educational purposes.
Vanderbilt University may need to consider the implications of these trade policies on its international student body, as changes in economic conditions could affect the ability of international students to study in the U.S.

Impacted Programs

Owen Graduate School of Management may see increased demand for expertise in international trade and economic policy, presenting opportunities for research and curriculum development in these areas.
Vanderbilt Law School could play a crucial role in analyzing the legal implications of new trade policies and providing insights into international trade law and compliance.
The Department of Economics might need to adjust its research focus to address the economic impacts of reciprocal tariffs and trade policy changes, potentially collaborating with government agencies and think tanks.
Vanderbilt’s Office of International Affairs may need to reassess its strategies for maintaining and expanding international partnerships in light of changing trade dynamics.

Financial Impact

The imposition of reciprocal tariffs could lead to increased costs for imported goods and services, potentially affecting the university’s budget and financial planning.
Vanderbilt University might experience changes in funding opportunities, particularly if federal grants prioritize research related to trade policy and economic security.
There may be opportunities for Vanderbilt to secure funding for research on the impacts of trade policies, particularly through collaborations with the Department of Commerce and other federal agencies.
As trade policies evolve, there could be shifts in the demographics of students applying to Vanderbilt, potentially affecting tuition revenue and financial aid distribution.

Relevance Score: 3 (The order presents moderate risks involving compliance or ethics, with potential impacts on international collaborations and financial planning.)

Key Actions

Vanderbilt’s International Business Program should analyze the impact of the “Fair and Reciprocal Plan” on global trade dynamics. Understanding these changes will be crucial for preparing students and faculty for shifts in international business practices and policies.
The Office of Federal Relations should monitor developments in trade policies and tariffs that could affect research funding and international collaborations. By staying informed, Vanderbilt can better navigate potential challenges and opportunities in securing federal and international grants.
Vanderbilt’s Economic Research Department should conduct studies on the effects of reciprocal tariffs on the U.S. economy and global trade. These insights can be valuable for policymakers and businesses, positioning Vanderbilt as a thought leader in economic policy analysis.
The Center for International Studies should explore partnerships with institutions in countries affected by the new trade policies. This could enhance Vanderbilt’s global engagement and provide students with unique learning opportunities in international relations and trade.

Opportunities

The emphasis on correcting trade imbalances presents an opportunity for Vanderbilt’s Business School to develop specialized courses on trade policy and international economics. This could attract students interested in careers in trade and economic policy.
Vanderbilt can leverage its expertise in economic research to influence public discourse on trade policies. Hosting conferences and publishing research on the implications of the “Fair and Reciprocal Plan” can enhance the university’s reputation as a leader in economic thought.
The focus on national security in trade policy aligns with Vanderbilt’s commitment to interdisciplinary research. Collaborating with the School of Engineering and Political Science Department on projects related to trade and security could yield innovative solutions and insights.

Relevance Score: 3 (Some adjustments are needed to processes or procedures to align with changes in trade policies and capitalize on new opportunities.)

Average Relevance Score: 2

Timeline for Implementation

N/A – No specific deadlines or enforcement timelines for the plan’s development or implementation are mentioned in the text.

Relevance Score: 1

Impacted Government Organizations

Office of the United States Trade Representative (USTR): As the lead agency on international trade negotiations, the USTR will likely be tasked with developing and implementing the “Fair and Reciprocal Plan,” directly engaging in negotiations that address non-reciprocal trade practices.
Department of Commerce: This agency will play a critical role in analyzing trade data, advising on economic impacts, and helping shape policies that correct trade imbalances and support American industries.
Department of the Treasury: Given the plan’s emphasis on economic and national security, the Treasury will be involved in assessing the fiscal implications of tariffs, trade deficits, and overall economic fairness in trade relationships.
Department of State: With the need for diplomatic engagement and negotiations with trade partners, the State Department will likely be engaged in addressing international aspects of the plan.

Relevance Score: 2 (Several key agencies in trade policy and economic security are impacted by the order.)

Responsible Officials

N/A – The text orders the development of a comprehensive trade plan but does not designate any specific official or agency responsible for its implementation.

Relevance Score: 1 (No specific officials were identified, thus the directive minimally impacts any particular implementation responsibility.)