Trump Administration Shifts U.S. Trade Policy with New ‘America First’ Approach"

Tariffs and Enforcement: A Return to Protectionism

President Trump’s immediate focus is on tariffs and economic security. On January 21, 2025, he reaffirmed his plan to impose:

• 10% tariffs on Chinese imports
• 25% tariffs on goods from Mexico and Canada

These tariffs, set to take effect by February 1, 2025, contrast sharply with President Biden’s trade strategy. Under Biden, the U.S. sought multilateral cooperation, focusing on diplomatic negotiations and targeted tariffs rather than sweeping tax measures. His administration worked to stabilize trade relations with China while maintaining pressure on Beijing for intellectual property concerns. Trump’s approach, however, emphasizes speed and unilateral action. His memorandum directs key agencies to evaluate trade imbalances, foreign currency manipulation, and unfair practices—potentially paving the way for additional tariffs beyond the initial round.

‍The Role of the International Emergency Economic Powers Act (IEEPA)

One of the most striking differences in Trump’s trade policy is his potential use of the International Emergency Economic Powers Act (IEEPA) to fast-track tariffs. The IEEPA grants the president broad authority to impose economic restrictions during national emergencies. Trump has hinted at leveraging this law to bypass traditional investigation processes, which previously slowed tariff implementation under Section 232 of the Trade Expansion Act and Section 301 of the Trade Act.

‍Biden, in contrast, relied on structured trade reviews and international coordination rather than emergency measures to enforce trade policies. His administration’s measured approach meant that tariff decisions often involved months of review and public input.
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‍USMCA and Trade with North American Partners

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‍The United States-Mexico-Canada Agreement (USMCA) also faces renewed scrutiny under Trump. While Biden focused on enforcement of labor and environmental provisions, Trump’s policy signals a potential renegotiation or revision of the deal. His administration has ordered an early assessment of the USMCA’s impact on U.S. workers and industries—suggesting a more aggressive stance on trade relations with North American partners.
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‍Trade Policy as a Tool for Broader Economic Strategy

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‍Beyond tariffs, Trump’s trade memorandum integrates economic security into foreign policy. His administration links trade measures to issues such as unlawful migration and fentanyl flows—highlighting an approach where trade policy doubles as a national security tool.

Biden’s strategy, on the other hand, aimed to strengthen alliances and reduce supply chain vulnerabilities by investing in domestic manufacturing and green energy production. His administration promoted friendshoring, encouraging trade with allies to counter China’s economic influence.
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‍What’s Next for U.S. Trade?

‍With Trump’s April 2025 deadline for trade reports, businesses should prepare for additional policy shifts. His administration’s emphasis on bilateral agreements, tariff enforcement, and trade-related national security measures suggests further disruptions in global trade dynamics.

For companies engaged in international trade, understanding these shifts is critical. The return to a tariff-heavy, protectionist strategy could mean higher costs and shifting supply chains—requiring proactive planning to navigate upcoming changes.