President Trump promised to crack down on "foreign importers that cheat" Friday, signing two executive orders that he said would lead to a historic reversal of the nation's trade deficit.
"They're cheaters! From now on, those who break the rules will face the consequences and they'll be very severe consequences," Trump said.
Speaking in the Oval Office, Trump cast the trade imbalance as largely the fault of unscrupulous foreign powers, aided by U.S. special interests that have helped push through bad trade deals. He then walked out of the executive order signing ceremony without signing the orders, instead retreating to his private study.
"Thousands of factories have been stolen from our country, but these voiceless Americans now have a voice in the White House. Under my administration, the theft of American prosperity will end. We're going to defend our industry and create a level playing field for the American worker, finally," he said.
The two executive orders will:
► Require a report on the causes of the trade imbalance within 90 days. That report will focus on 16 countries with which the United States had a significant trade deficit in goods last year: China, Japan, Germany, Mexico, Ireland, Vietnam, Italy, Korea, Malaysia, India, Thailand, France, Switzerland, Taiwan, Indonesia and Canada. The administration plans public meetings to hear from manufacturers, service providers, workers, farmers, and consumers.
► Call for a strategy for customs agents to use legal tools to collect anti-dumping duties already owed to the United States. The White House is proposing to require new importers — or those already found guilty of abusive trade practices — to post a bond before their goods are permitted through U.S. ports. The Government Accountability Office says importers have racked up more than $2.3 billion in uncollected anti-dumping and countervailing duties since 2001.
Trump administration officials touted the orders as sweeping and historic. "If anyone had any doubt about the president's resolve to fix the trade problems, these two executive orders should end that speculation now and for all time," said Secretary of Commerce Wilbur Ross. "This marks the beginning of a totally new chapter in the American trade relationship with our partners overseas."
Peter Navarro, Trump's top trade adviser, said it was the culmination of Trump's campaign promises to bring back American jobs. "Today, this is the beginning of the fulfillment of those promises in a grand way."
For now, it's unclear where the process will lead. The trade deficit report Trump has called for largely duplicates the National Trade Estimate, an annual report already required by the Trade Act of 1974. Trump's report "will not add anything of value" to that report, said Matthew Gold, a trade expert at Fordham law school.
As it happens, the White House released the 2017 estimate Friday. Among its findings: The deficit in manufactured goods has doubled since 2000, to $648 billion.
The biggest trade deficit was with China, at $347 billion in 2016 — a 5.5% decrease from 2015 as imports from China fell.
Trump meets with Chinese President Xi Jinping at his personal Mar-a-Lago retreat next week, and Trump said the trade deficit would be on the agenda. "And we're going to get down to some very serious business," Trump said.
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