As speculation intensifies around the potential trade strategies of the second Trump administration, Venable's legal and policy professionals gathered in a webinar to explore the anticipated shifts in U.S. trade policy. Central to the discussion were tariffs, trade enforcement tools, and their potential impacts on the global economy. Ashley Craig, a co-chair of the firm's International Trade and Logistics Group, laid out a roadmap of possible actions, ranging from aggressive tariff increases to leveraging international agreements.
Partner Liz Lowe highlighted legal mechanisms like Sections 301 and 232 of the Trade Act, which were instrumental during the first Trump administration, particularly against China. Lowe noted that tools like the International Emergency Economic Powers Act (IEEPA) could enable the administration to impose sweeping tariffs quickly. For instance, President-elect Trump has already proposed a 25% tariff on all goods from Canada and Mexico and threatened additional tariffs on China and the BRIC nations if they pursue alternative currency arrangements. Such actions, Lowe stressed, could provoke retaliatory tariffs from affected nations, complicating global supply chains further.
Political dynamics also play a crucial role. Senior policy advisor Nick Choate emphasized that while tariffs are broadly popular among voters, their economic repercussions might challenge congressional support. With razor-thin majorities in Congress, passing new trade-related legislation could prove difficult. However, panelists suggested that trade enforcement, such as tightening de minimis rules and increasing oversight under the UFLPA (Uyghur Forced Labor Prevention Act), is likely to intensify. As the global trade landscape braces for potential upheaval, the Venable team advised businesses to prepare by reviewing contracts, diversifying supply chains, and engaging policymakers early.
To learn more about upcoming webinars or watch past recordings from our series, Transition Outlook: What to Expect from the Second Trump Administration, click here. The weekly webinar series runs through March 2025.