Draft Trump trade memo targets US trade deficit, China purchases of US exports

WASHINGTON (Reuters) – U.S. President Donald Trump is ordering federal agencies to “investigate and remedy” persistent U.S. trade deficits, and address other countries’ unfair trade practices and currency manipulation, according to a draft White House trade memo seen by Reuters that stops short of ordering immediate new tariffs.

The memo, expected to be signed shortly, also directs federal agencies to assess China’s performance under the “Phase 1” trade deal he signed with Beijing in 2020 to end a nearly two-year tariff war. The deal required China to increase purchases of U.S. exports by $200 billion over two years, but Beijing failed to meet the targets as the COVID-19 pandemic hit.

“China’s adherence to this agreement will now be assessed, to determine whether enforcement or changes are required,” the memo reads.