The first order directs the Commerce Department to put together a report within 90 days that will examine the factors contributing to the trade deficit. The second aims to increase the collection of duties by ensuring a more aggressive collection process.
Commenting on the first order, Commerce Secretary Wilbur Ross said the report will seek to identify “every form of trade abuse and every non-reciprocal practice that now contributes to the U.S. trade deficit.” The report will take a close look at countries with which the U.S. runs a substantial trade deficit, such as China, Germany, Mexico, and Japan. Factors such as currency misalignment, flouting of trade rules, ineffective trade agreements, and lax enforcement will be given special scrutiny.
Regarding the second order, the White House National Trade Council Director Peter Navarro explained that it is aimed at rectifying a longstanding problem of insufficient collection of anti- dumping and countervailing duties at U.S. ports of entries. There is concern that, since 2000, as much as $3 billion in duties have gone unpaid. Trump’s order will compel the Department of Homeland Security to take the necessary legal steps to ensure those tariffs are paid.