Trump Orders Review of Trade Agreements... Will the Korea-US FTA Also Be Reexamined?

President Signs "America First Trade Policy" Memorandum
China, Canada, and Mexico Specifically Mentioned

U.S. President Donald Trump signed a memorandum on the 20th (local time) immediately after his inauguration to review existing trade agreements. This has led to speculation that the Korea-U.S. Free Trade Agreement (FTA) could also be subject to review.

According to the White House on the day, President Trump signed the "America First Trade Policy" memorandum.

Donald Trump, President of the United States. Photo by AP Yonhap News

Through this, President Trump instructed the U.S. Trade Representative (USTR) to review existing trade agreements and recommend necessary or appropriate amendments to obtain or maintain "reciprocal and mutually advantageous concessions" with free trade agreement partner countries. This marks the beginning of preparations to identify the causes of the trade deficit and take substantive measures such as imposing tariffs.

The Department of Commerce was directed, along with the Treasury Department and USTR, to investigate the causes of the large and chronic U.S. merchandise trade deficit and the economic and national security impacts and risks arising from the trade deficit, and to recommend appropriate measures such as global additional tariffs or other policies to correct the trade deficit.

The Treasury Department was instructed to review the exchange rate policies of major trading partners and respond to currency manipulation. Additionally, the Treasury Department was ordered to investigate the feasibility and recommend methods for establishing an External Revenue Service (ERS) to collect tariffs, taxes, and other foreign trade-related duties, in consultation with the Department of Commerce and the Department of Homeland Security.

The memorandum mentioned that trade agreements with China, Canada, and Mexico, among the United States' trading partners, should be reviewed. Although South Korea was not explicitly mentioned, the Korea-U.S. FTA could be included as it is an existing trade agreement.

Furthermore, President Trump ordered an evaluation of whether China is implementing the U.S.-China trade agreement concluded during his first term and to recommend appropriate measures such as imposing tariffs. Previously, a bill was introduced in the U.S. Congress to revoke China's "Permanent Normal Trade Relations (PNTR)" status. President Trump also instructed relevant departments to evaluate such legislation.

He also ordered the Department of Commerce to conduct an economic and security assessment of the U.S. industrial and manufacturing base and evaluate whether investigations and measures are necessary for imports that threaten national security. This is interpreted as an intention to restrict imports of certain products on national security grounds by applying Section 232 of the Trade Expansion Act, as was done during Trump's first term. President Trump had the measures applied to steel and aluminum under Section 232 reviewed.

He instructed a review of the export control system to close existing loopholes and to reexamine the foreign investment restrictions implemented by the Biden administration.

He ordered that the results of these reviews be submitted by April 1.

The plan to impose tariffs was not included in this memorandum. However, President Trump announced at the White House on the same day, while signing an executive order, that tariffs would be imposed on Canada and Mexico starting February 1. Regarding the universal tariff pledge, he said, "It is not ready yet," but added, "It will be imposed soon."

This content was produced with the assistance of AI translation services.