DateIssued:April2,2025 RegulatingImportswithaReciprocalTarifftoRectify TradePracticesthatContributetoLargeand PersistentAnnualUnitedStatesGoodsTradeDeficit
Topic:Tariffs,Trade,EconomicOpportunity,GlobalAffairs
WHATDOESTHISEXECUTIVEORDERDO?
Thisexecutiveorderdeclaresanationalemergencytoaddressthe$1.2 trillionU.S.goodstradedeficit,drivenbynon-reciprocaltariffratesand non-tariffbarriersthatdisadvantageU.S.exports.
Theorderaimstorebalancetradeflowsbyimposingreciprocaltariffs andrevitalizingdomesticmanufacturing,particularlyincriticalsectors likedefenseandtechnology.
Theorderincludeskeyactionsoftariffrebalancingbyimposingduties onimportsfromcountrieswithhighertariffratesthantheU.S.,suchas India,China,EuropeanUnion,Brazil,VietnamandTurkey.
Theorderencompassesnon-tariffbarriers-hiddenrestrictionsthat foreignnationsusetoblockU.S.goods–whichtargetpracticeslike technicalstandards,importlicensingrestrictions,andinadequate intellectualpropertyprotections.Italsoincludescurrencypractices, value-addedtaxes,suppressedwagesintradingpartners(e.g.,China’s 39%consumptiontoGrossDomesticProductratiovs.U.S.68%),weak labor/environmentalstandards,andcorruption.
Theorderfurtherprioritizesrebuildingdomesticcapacitydesignatedas criticalinfrastructureindefense-industrialsectors(e.g., biomanufacturing,microelectronics)andagriculture.
HOWWILLTHISEXECUTIVEORDERBEENFORCED?
ThisexecutiveorderauthorizestheUnitedStatesTradeRepresentative,in consultationwiththeSecretariesofState,Treasury,Commerce,and HomelandSecurity,aswellastheAssistanttothePresidentforEconomic Policy,theSeniorCounselorforTradeandManufacturing,theAssistantto thePresidentforNationalSecurityAffairs,andtheChairofthe InternationalTradeCommissiontoimplementandsubmitrecurringand finalreportstoCongressonthedeclarednationalemergency,ensuring oversightandlegislativeawareness.
TheorderwillbeenforcedthroughU.S.CustomsandBorderProtection, whichisauthorizedtocollectdocumentationtoverifytheU.S.contentand substantialtransformation/finishingofimportedgoods.
TheordersubjectsgoodsfromCanadaorMexicothatdonotmeetthe UnitedStatesofAmerica,UnitedMexicanStates,andCanadaoriginrules toa25%additionaladvaloremduty,whilenon-originatingCanadian energyresourcesandpotashfaceareduced10%duty.
TheordergrantsthePresidenttheauthoritytomodifythesetariffsunder specificconditions,detailingscenariosforadjustmentsbasedonnational security,economicstability,orreciprocalagreementswithtrading partners.
Theorderallowsforexcludedproducts,particularlythosedeemed essentialtoU.S.interests,suchasdefensesystemsorpublichealthgoods. Theseexclusionsavoiddisruptingkeysectorswhilemaintainingleverage intradenegotiations.
HOWDOESTHISIMPACTBLACKCOMMUNITIES?
ManyBlackcommunities,especiallyinindustrialcitieslikeDetroit,Cleveland, andChicago,havesufferedfromindustrialdecline.Between1998and2020, totalBlackmanufacturingemploymentdeclinedby30.4%,contributingto thebroaderlossofover5millionmanufacturingjobs,leadingtofactory closuresduetoglobalizationandoutsourcing.Thisordercouldboost domesticproduction,potentiallyleadingtomorejobopportunitiesin manufacturingsectorswhereBlackworkershavehistoricallybeenwellrepresented.
ManyBlack-ownedbusinessesrelyonimportedgoods,rawmaterials,and components.Tariffsincreasethecostoftheseimports,increaseproduction expenses,andreduceprofitmargins,especiallyforsmallbusinesseswith tightbudgets.Tariffscandisruptestablishedsupplychains,forcingBlackownedbusinessestofindnewsuppliersorproducts oftenathighercostsor withlongerdelays.RetaliatorytariffsfromU.S.tradingpartnerscanrestrict exportopportunities.ThiscanhurtBlackentrepreneurstryingtogrowtheir businessesininternationalmarkets,reducingcompetitivenessandsales.
Astariffsleadtohigherpricesforgoods,consumersmaycutbackon spending.Black-ownedbusinesses,manyofwhichservelocalorlow-to middle-incomecommunities,mayexperiencereducedsales.Forexample, theBlackhaircareindustryimportsalargepercentageofitsproductsfrom ChinaandIndiaandincreasedtariffscouldleadtohighercostsforboth Blackbusinessownersandconsumers.
IndustriesthatemployBlackworkers,suchasretail,service,andlogistics, maybenegativelyimpactedifsupplychaincostsincreaseorinternational tradeslowsdown.Blackworkersrepresent13%oftheoverallU.S.workforce butaccountforadisproportionatelyhigh20%ofemploymentinthe transportationindustry.IfU.S.importsdecline,itcouldjeopardizejobsat ports,transportationhubs,andlogisticswheremanyBlackworkersare employed,potentiallyharmingtheireconomicstability.
Theimpositionofreciprocaltariffscouldincreasethecostofimported goods,suchaselectronics,clothing,andfood,disproportionatelyaffecting low-incomeBlackhouseholdsthatrelyonaffordablegoods.Companieswill likelypasshigherproductioncostsontoconsumers,andinflationcould strainfamilybudgets.
HOWARECBCMEMBERSRESPONDING?
TheCongressionalBlackCaucus(CBC)hasmaintainedacommitmentto economicempowermentforBlackAmericansforover50years.CBC Membershaverespondedtothisexecutiveorderwithconcernaboutits impactonBlackcommunities.
Rep.TroyA.Carter,Sr.,1stViceChairoftheCBC,issuedthefollowing statementrespondingtothetariffs:“WhenDonaldTrumpimposes tariffs,heisn’ttaxingforeigngovernments—he’staxingus.Priceswillgo upongoodswerelyon:clothing,food,appliances,andconstruction materials.Ourportworkers,truckdrivers,shipbuilders,andsmall businessownerswillallfeelthestingofthesecostspasseddownfrom Washington.[...]Whenthepriceofgoodsgoesup,itdoesn’tjusthurt theconsumer ithurtstheeconomyoftheentiredistrict.Trumpis raisingtaxesonworkingpeopleinthe2ndDistrictwhilegiving billionairesandbigcorporationsmassivetaxbreaks.That’snot leadership that’sabetrayalofthepeoplewhokeepthiscountry running.”FullStatement
SenatorReverendRaphaelWarnockissuedthefollowingstatement respondingtothisexecutiveorder:“Today,theTrumpAdministration announcedsweepingtariffsonimportsthatwillraisethepriceof everythingfromgroceriestocarstohomes.Makenomistake:thisis badnewsforAmerica’shard-workingfamilies.It’sbafflingthatina timewhenthecostoflivingisalreadytoohigh,thePresident,who campaignedonloweringprices,wouldputinplacepoliciesthatwill surelymakeeverydaygoodsmoreexpensive.Thisisacynicalsales taxonordinarypeopleputinplacetoexcuseamassivetaxcutfor millionairesandbillionaires.It’sclearthisadministrationisfocusedon themandnotonyou.Iwillfightthistarifftaxonworkingpeopleand alwaysworktoloweryourcosts.”
