In a move aimed to aggressively counter what has been described as non-reciprocal trade practices, the current administration has announced the introduction of the "Fair and Reciprocal Plan" to reshape America's international trade relationships. According to a detailed memorandum published on the White House’s official website, the United States has historically been subject to unfair treatment by trade partners, a factor contributing significantly to the country's large annual trade deficit in goods. The memorandum explicitly states, "For many years, the United States has been treated unfairly by trading partners, both friend and foe."

The policy directive intends to level the playing field by examining all aspects of trade with partners abroad and make necessary adjustments to foster fairer exchanges. One of the key steps laid out in the plan is to "determine the equivalent of a reciprocal tariff with respect to each foreign trading partner." The White House's memo emphasizes the policy goal of the United States is to "reduce our large and persistent annual trade deficit in goods and to address other unfair and unbalanced aspects of our trade with foreign trading partners."

This strategic move has been initiated under the Presidential Memorandum of January 20, known as the America First Trade Policy Memorandum, which highlights the administration's focus on national security and economic growth, highlighting the adverse effects of the trade deficit on the nation's industrial base and competitiveness. The White House points out the burdens placed on American workers and industries due to "unfair practices and limited access to foreign markets," with a stated aim to grow the United States economy and improve trade relationships to benefit "American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses," as per White House website.

Expected to undergo analysis are factors contributing to trade imbalances, including tariffs imposed on U.S. products, discriminatory taxes, and nontariff barriers impeding U.S. exports. The policy will also look to countervail practices that cause exchange rates to deviate from their market value and other mercantilist policies that unfairly impact American business and labor competitiveness. The memorandum further emphasizes the need to comprehensively assess foreign practices by stating, "The Plan shall ensure comprehensive fairness and balance across the international trading system by factoring in losses as a result of measures that disadvantage the United States as applied, regardless of what they are called or whether they are written or unwritten," as reported by the White House website.

As the United States Trade Representative and other relevant agencies march forward with investigations, findings are expected to influence the development of specific remedies to promote more reciprocal trade relations. The directive targets a 180-day window for the Office of Management and Budget to "assess all fiscal impacts on the Federal Government and the impacts of any information collection requests on the public," subsequently delivering an assessment in writing to the president, according to the White House website.

For further details on the administration's new trade policies, readers can view the full memorandum on the White House website.