America First Trade Policy

What is the Presidential Action?

In simple terms, the Presidential Memorandum issued on January 20, 2025, lays out a comprehensive directive aimed at prioritizing the U.S. economic and security interests in international trade policies. This action is designed to enhance American industrial and technological capabilities, safeguard economic and national security, and substantially benefit U.S. workers, manufacturers, and businesses through a series of targeted trade investigations and adjustments.

Background or Context with Statistics and Source References

Since the 2017 administration, there has been a shift towards reinforcing trade policies that focus on bolstering the American economy and labor force. According to data from the U.S. Bureau of Economic Analysis and the U.S. Census Bureau, the trade deficit in goods and services was $631 billion in 2020. This action builds on previous policies that aimed to reduce this deficit and foster economic growth by stabilizing supply chains and promoting domestic industries.

Why This Action Was Taken

The motivation behind this renewed focus on an America First Trade Policy is multifaceted:

• Rectify persistent trade imbalances that disadvantage American businesses and workers.
• Strengthen national security by reducing dependency on foreign manufacturing for critical supplies.
• Counteract unfair trade practices and currency manipulations by other countries.
• Enhance the competitiveness of American products in the global market.

Short and Long-Term Impact on People

The immediate effects of these trade policies may include an increase in domestic manufacturing jobs and possibly higher prices for goods where imports are restricted or tariffs are imposed. In the long term, these policies aim to:

• Stabilize the American economy through improved trade balances.
• Secure better wages and working conditions for American workers.
• Encourage domestic innovation and technological advancement.

Performance/Impact Parameters to Measure Success

The success of the America First Trade Policy can be assessed through several key indicators:

• Reduction in the U.S. trade deficit.
• Increase in the number of manufacturing jobs and growth in industrial sectors.
• Improvements in the real median household income and wage levels.
• Compliance and favorable adjustments in international trade practices towards U.S. policies.