Donald Trump to Clamp Down on Non-Payment of Anti-Dumping and Anti-Subsidy Duties

After the call to replace Obamacare, President Trump is back again on fulfilling his primary agendas. Trump did not receive full support to change the healthcare policies. It seems that he will find some support within the American public in the case of removing its trading biases. America is in a state of chaos regarding its trade policies. The US is going through severe trade deficit with countries like China and Japan. US has the largest amount of trade deficit with China amounting to $734 billion. President Trump has come up with some harsh policies to change the current and unfavourable condition.


Trump’s Plans


Trump would be signing some executive orders this Friday which revolve around clamping down on non-payment of anti-dumping and anti-subsidy duties on imports. This initiative will allow the US administration in fighting against the corrupt trade practices in terms of its imports. The decision is taken by president just before his first meeting with Chinese President Xi Jinping. It is speculated that it can raise the tension between the two countries, especially when their presidents are meeting soon. According to a tweet by Trump the meeting “will be a very difficult one”.

The directive includes a conduct on the unfair trade practices like unfair subsidies, poorly aligned currencies, dumping of goods on low costs and treatment of the tax system. While America looks determined to cleanse its trade practices Zheng Zeguang (foreign ministry of China) looks calm. He said “China does not deliberately seek a trade surplus. We also have no intention of carrying out competitive currency devaluation to stimulate exports. This is not our policy”.

What to Expect


The step taken by US president will empower the Commerce department to investigate in cases that include anti-dumping and anti-subsidy. The US administration will also look into the under and non – payment of anti-dumping and anti-subsidy duties. Peter Navarro speculates that almost $2.8 billion worth of duties were not collected between the year 2001 and 2016.  He stated “This is a story about trade abuses, this is a story about 40 countries that basically subsidise their products unfairly and send them into our country or dump their products.”

The meeting of both the president is likely to heat up and end without any settlement. If Trump stays firm on his policies, the US trade relations may change forever. Many countries will have to think twice before while sending goods to America.