Editor's note: This article has been updated to reflect the February 1, 2025, tariff announcements and the subsequent deal putting the Canada and Mexico tariffs on hold.
On his first day in office, President Donald Trump issued a wide-ranging presidential memorandum directing the federal government to implement an “America First” trade policy. The January 20, 2025, memo was notable to many observers in that it called for a series of reports on potential tariff actions and trade-related measures. Yet on February 1, 2025, President Trump proceeded to impose 25% tariffs on imports from Canada and Mexico, and 10% tariffs on imports from China. (See the White House fact sheet. The Canada and Mexico tariffs were subsequently put on hold.)
The memo directs agencies to conduct reviews of existing and potential trade measures and submit recommendations to the White House, in most cases by April 1, 2025. In addition to studying the potential establishment of an External Revenue Service (ERS) to collect tariffs, duties and other trade-related revenues, agencies are tasked with issuing reports and recommendations on the following.
Modification of Existing Tariff Measures
- Antidumping and countervailing duty laws, including with regard to transnational subsidies, cost adjustments, affiliations, “zeroing” and verification procedures.
- The duty-free de minimis exception under Section 1321 for imports valued at $800 or less, particularly the risk of importation of counterfeit products and contraband drugs, such as fentanyl, under this exception.
- The effectiveness of Section 232 tariffs on steel and aluminum in responding to national security threats.
- The impact of the U.S.-Mexico-Canada Agreement (USMCA) on American workers and businesses in preparation for the July 2026 review of the USMCA.
Potential New Tariff Measures
- The potential levying of tariffs on Canada, Mexico, China and any other relevant jurisdictions in which trade and national security measures are needed to resolve unlawful migration and fentanyl smuggling.
- The imposition of additional tariffs pursuant to Section 301 on goods from China — or other countries — if necessary to remediate unfair trade practices.
- The creation of a “global supplemental tariff” if needed to remediate causes of the U.S. trade deficit in goods.
- The imposition of additional Section 232 tariffs to protect the domestic industrial and manufacturing base.
The reports and recommendations will be revealing and indicative of the intended direction of trade policy in the second Trump administration, but companies should expect President Trump to take trade-related action before these reports are issued.
See the full Executive Briefing publication
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