Understanding the “America First Trade Policy”

On January 20, the U.S. administration introduced the America First Trade Policy Presidential Memorandum, instructing the Office of the United States Trade Representative (USTR) and federal agencies to investigate and issue reports related to economic policy and U.S. trade by April 1. The memorandum covers several policy matters—including unfair trade practices, U.S. trade agreements, potential application of new tariff measures, and the U.S.-China trade relationship.
Here are some of the key points to understand as you think about your supply chain.
Global supplemental tariffs
The memorandum instructs the U.S. Department of Commerce, Department of Treasury, and USTR to investigate the U.S. trade imbalance with trading partners and recommend measures to be taken. For example, the memorandum refers to a “global supplemental tariff” as one potential measure without providing details.
External Revenue Service
The memorandum orders the Departments of Homeland Security (DHS), Treasury, and Commerce to investigate the “feasibility of establishing” an External Revenue Service to collect tariff revenue from foreign sources. Historically, tariff revenue has been collected by U.S. Customs and Border Protection (CBP). No additional details were provided, but this action would require the creation of a new government agency under congressional authority.
Tariffs reviewed under certain legal authorities
The USTR, Treasury, Commerce, and Senior Counselor for Trade and Manufacturing are instructed to review and identify any unfair trade practices by other countries and recommend remedies. Some of the authorities mentioned include but are not limited to Section 201, Section 232, Section 301, and Section 337 of the United States Code and the International Emergency Economic Powers Act —all of which have been used to impose tariffs.
The memorandum further directs DHS in addition to these departments to assess the loss of revenue and risk of importation of counterfeit products and contraband drugs resulting from the $800 or less duty-free de minimis exception under Section 321 of the United States Code.
Trade agreement reviews
The memorandum instructs USTR to review existing U.S. trade agreements and sectoral trade agreements and recommend revisions that may be necessary with partner countries. No clarification is provided as to what this could mean for existing agreements.
Specific to the United States-Mexico-Canada Agreement (USMCA), the USTR is instructed to begin the public consultation process in preparation for the July 2026 agreement review and make recommendations regarding the United States’ participation in the agreement. Companies with North America supply chains should prepare to provide comments when the process begins.
Antidumping and countervailing duty (AD/CVD) laws
Commerce is instructed to review the process for applying these duties and ensure foreign supplier compliance.
U.S.-China trade partnership
The USTR is directed to assess the “Four-Year Review of Actions Taken in the Section 301 Investigation” report and recommend potential tariff modifications. Additionally, USTR and Commerce are to assess legislative proposals to revoke China’s Permanent Normal Trade Relationship status and make recommendations regarding any proposed changes.
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