Trump Calls for Closer Scrutiny of Trade Deficits and China's Deal Compliance

President Donald Trump issues a directive to federal agencies to investigate U.S. trade deficits and address unfair trade practices and currency manipulation. The memo instructs a review of China's compliance with the 'Phase 1' trade deal, signed in 2020, amid unmet purchase targets due to COVID-19.

President Donald Trump has tasked federal agencies with examining the roots of persistent U.S. trade deficits and addressing global unfair trade practices, including alleged currency manipulation. This directive stems from a draft memo reviewed by Reuters, stopping short of new tariff implementations.

The memo anticipates imminent endorsement and mandates an evaluation of China's adherence to the 'Phase 1' trade agreement concluded in 2020. The agreement aimed to cease a prolonged tariff conflict and obligated China to bolster its U.S. export purchases by $200 billion over a two-year period, targets that went unmet amid the COVID-19 pandemic.

The memo states that China's compliance with the agreement will be evaluated to decide on potential enforcement or necessary amendments.

(With inputs from agencies.)