{"id":2763,"date":"2025-02-19T10:58:47","date_gmt":"2025-02-19T15:58:47","guid":{"rendered":"https:\/\/www.mgocpa.com\/?post_type=perspective&#038;p=2763"},"modified":"2025-07-17T15:54:34","modified_gmt":"2025-07-17T20:54:34","slug":"president-trump-issues-executive-order-detailing-new-america-first-trade-policy","status":"publish","type":"perspective","link":"https:\/\/www.mgocpa.com\/perspective\/president-trump-issues-executive-order-detailing-new-america-first-trade-policy\/","title":{"rendered":"President Trump Issues Executive Order Detailing New \u201cAmerica First Trade Policy\u201d"},"content":{"rendered":"\n<p><strong>Key Takeaways<\/strong>:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>President Trump\u2019s Executive Order postpones the proposed 25% tariffs on imports from Canada and Mexico with a comprehensive review of U.S. trade policies by multiple agencies by April 1.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Executive Order mandates a thorough review of U.S. trade policies to establish a robust and reinvigorated trade policy that benefits American workers and businesses.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It also explores the feasibility of creating an External Revenue Service to collect tariffs and other trade-related revenue, potentially shifting the responsibility from U.S. importers to foreign producers.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>In his first day in office, President Trump issued a slew of Executive Orders (EO), including one that postponed the imposition of any immediate new tariffs that most were expecting on \u201cda one.\u201d&nbsp;<\/p>\n\n\n\n<p>The \u201cAmerica First Trade Policy\u201d EO instead postponed until at least February the proposed 25% tariffs on goods imported from Canada and Mexico. It also postponed any other tariffs indefinitely pending multiple reviews of assorted trade-related issues by many departments, agencies, and officials of his new administration. Generally, these reviews have a deadline of April 1, with that date now marking a \u201cbright line\u201d for the assessment of new tariffs under various trade remedies and other statutes.&nbsp;<\/p>\n\n\n\n<p>In essence, President Trump\u2019s EO instructed the identified agencies and officials to conduct a complete \u201ctop-to-bottom\u201d review of U.S. trade policy covering numerous issues to establish \u201ca robust and reinvigorated trade policy that promotes investment and productivity, enhances our Nation\u2019s industrial and technological advantages, defends our economic and national security, and \u2013 above all \u2013 benefits American workers, manufacturers, farmers, ranches, entrepreneurs, and businesses.\u201d&nbsp;<\/p>\n\n\n\n<p>In remarks accompanying the new EO, President Trump essentially deferred any action on the universal 10% tariff that was to apply to imports into the U.S. from all countries. \u201cWe may. But we\u2019re not ready for that yet,\u201d was the President\u2019s statement on this issue, one of major concern to the EU and all of the U.S.\u2019 top trading partners. The President also indicated that he wanted to reverse the persistent trade deficit with the EU, either through tariffs or more exports of U.S. energy.&nbsp;<\/p>\n\n\n\n<p>One of the highlights of the EO called for the feasibility of establishing and implementing a new External Revenue Service (ERS) that would collect tariffs and other trade-related revenue. Currently, tariffs are paid by the U.S. importer of record (not the foreign producer, exporter, or country) and collected by U.S. Customs &amp; Border Protection (CBP), whose revenue collection function remained within the Treasury Department after all of CBP\u2019s other functions were transferred to the new Department of Homeland Security in 2003 created after the attacks of 9\/11. Although the theory behind this proposal seems to be that foreign countries should be paying U.S. customs duties on goods exported from those countries to the U.S., some countries (like the U.S.) prohibit taxes of any kind (including customs duties) from being levied on exports.&nbsp;<\/p>\n\n\n\n<p>Another highlight concerned the contentious issue of de minimis shipments, i.e., those imported into the U.S. via special entry procedures for goods valued under $800, thus exempting them from any duty or import-related fees. While the focus of the EO is on counterfeit goods and illicit drugs, many unscrupulous global traders use these procedures to evade payment of duties on legitimate imports of merchandise like apparel and footwear that would otherwise be subject to some of the highest Normal Trade Relations duties of any category of merchandise when imports are valued at over $2,500 and formal entry procedures are required.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Provisions of the EO&nbsp;<\/h2>\n\n\n\n<p>Read on to learn about the key provisions of the EO.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Task<\/strong>&nbsp;<\/td><td><strong>Responsible Agency\/Official<\/strong>&nbsp;<\/td><td><strong>Deadline<\/strong>&nbsp;<\/td><\/tr><tr><td>Investigate causes of persistent U.S. deficits in merchandise trade and corresponding economic\/national security implications and recommend appropriate measures (including universal tariff supplements) to remedy such deficits&nbsp;<\/td><td>Commerce, Treasury, and U.S. Trade Representative (USTR)&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Investigate the feasibility of establishing and implementing an ERS to collect tariffs and other trade-related revenue &nbsp;<\/td><td>Treasury, Commerce, Homeland Security&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Review and identify any unfair trade practices by other countries and recommend appropriate remedies authorized under the Constitution, U.S. statutes, and U.S. free trade agreements &nbsp;<\/td><td>Office of the USTR, Treasury, Commerce, and White House Senior Counselor for Trade and Manufacturing (Peter Navarro)&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Initiate public consultation on the U.S.-Mexico-Canada Agreement (USMCA) to gauge the impact of USMCA on U.S. businesses and report to Congress on those results, including any new negotiation goals as the statutorily mandated 2026 congressional review of USMCA ramps up&nbsp;<\/td><td>USTR&nbsp;<\/td><td>No later than October 2025 (as already set forth in USMCA)&nbsp;<\/td><\/tr><tr><td>Assess whether currency manipulation\/misalignment by any country that provides an unfair trade advantage and recommend appropriate measures to counter such practices&nbsp;<\/td><td>Treasury&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Review all 20 existing U.S. free trade agreements (FTAs) and recommend any amendments needed to achieve or continue trading reciprocity with that partner country\/countries&nbsp;<\/td><td>USTR&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>To obtain market access, identify countries with which the U.S. can negotiate bilateral or sector-specific agreements and make recommendations regarding potential agreements&nbsp;<\/td><td>USTR&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Review policies, regulations, and procedures for antidumping and countervailing duties vis-\u00e0-vis transnational subsidies, cost adjustments, affiliations, and the U.S. practice of \u201czeroing,\u201d i.e., assigning any U.S. sales above the \u201cnormal value\u201d established in the foreign country with a zero value, thus distorting the calculation of the antidumping duty margin by only including U.S. sales below the \u201cnormal value\u201d&nbsp;<\/td><td>Commerce&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>For federal procurement purposes, assess the impact of all U.S. FTAs (and the WTO Agreement on Government Procurement) on the volume of purchases under the Buy American Act and Hire American Act and make recommendations to favor domestic workers and manufacturers&nbsp;<\/td><td>USTR with White House Senior Counselor&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Quantify the loss of tariffs and risks under the de minimis rules for imported counterfeit goods and contraband drugs and recommend modifications to existing law&nbsp;<\/td><td>Treasury, Commerce, Homeland Security, WH Senior Counselor&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><tr><td>Determine whether U.S. citizens or companies are subject to discriminatory or extraterritorial taxes&nbsp;<\/td><td>USTR, White House Senior Counselor&nbsp;<\/td><td>April 1&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Insight\u00a0<\/h2>\n\n\n\n<p>Now that President Trump has issued this sweeping EO, there\u2019s a good chance that tariff increases may be part of the solution his administration enacts\u2014perhaps with congressional approval via legislation or via Presidential Proclamations issued under a variety of trade remedy or other statutes.&nbsp;<\/p>\n\n\n\n<p>With the new April 1 deadline looming ahead of us all, your company should be taking immediate measures to prepare for any coming changes. When you understand the legal mechanisms available to you and proactively adopt strategic measures, you can navigate these challenges and seize opportunities in a global market that will keep evolving.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How MGO Can Help\u00a0<\/h2>\n\n\n\n<p>MGO can help your business navigate shifting trade policies and regulations with a range of strategic services. Our consulting team works with our clients to assess the potential impact of postponed tariffs and trade policy changes, developing strategies tailored to you to stay ahead. In tax planning and compliance, we identify tax implications and opportunities tied to these new trade policies, making sure businesses stay compliant while maximizing tax benefits. We also provide risk management support, helping businesses evaluate and mitigate risks related to the proposed ERS and other trade-related revenue changes. Our supply chain optimization services help businesses adjust their strategies in response to potential tariff increases and shifts in de minimis shipment rules. Our audit and assurance services make sure you\u2019re compliant, reinforcing investor and lender confidence every step of the way. <a href=\"https:\/\/www.mgocpa.com\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">Contact us<\/a> to learn more.&nbsp;&nbsp;<\/p>\n\n\n\n<p><em>Damon V. Pike, Mathew Mermigousis and James Pai. Copyright \u00a9 2025 BDO USA, P.C. All rights reserved. www.bdo.com<\/em>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways:\u00a0 &#8212; In his first day in office, President Trump issued a slew of Executive Orders (EO), including one that postponed the imposition of any immediate new tariffs that most were expecting on \u201cda one.\u201d&nbsp; The \u201cAmerica First Trade Policy\u201d EO instead postponed until at least February the proposed 25% tariffs on goods imported [&hellip;]<\/p>\n","protected":false},"featured_media":2767,"template":"","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"perspective_topic":[114,167,313,65,64,55],"perspective-type":[42],"class_list":["post-2763","perspective","type-perspective","status-publish","has-post-thumbnail","hentry","perspective_topic-government","perspective_topic-risk-management","perspective_topic-tariffs","perspective_topic-tax","perspective_topic-tax-compliance-insights-resources","perspective_topic-tax-planning","perspective-type-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - 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