Beyond Commerce: Trump's Blueprint for the use of Trade Policy

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On January 26, 2025, President Donald Trump announced, via a post on Truth Social, the imposition of a 25% tariff on all Colombian imports into the United States, with a potential increase to 50% within a week. This action was in response to Colombian President Gustavo Petro's refusal to accept deportation flights of Colombian nationals from the U.S. In retaliation, President Petro announced a reciprocal 25% tariff on U.S. goods entering Colombia. By late evening, the White House announced that the Colombian government had agreed to accept deportees under U.S. terms, including flights operated by U.S. military aircraft. As a result of this agreement, both governments suspended the proposed tariffs, with the White House stating that the measures would not be implemented unless Colombia failed to uphold its commitments. Ultimately, neither government issued formal legal instruments implementing the publicly announced measures.

This incident demonstrates how the Trump administration plans to employ trade policy to achieve objectives unrelated to trade. In the Colombia case, tariffs—a mechanism typically used to protect domestic industries or address unfair trade practices—were leveraged to pursue immigration policy goals.

The Trump Blueprint: Decoding America's New Trade Strategy

While the Colombia situation drew significant media attention, it is only the first example of a broader policy shift announced by President Trump on the very same date of his inauguration. The America First Trade Policy, articulated in the Presidential Memorandum of January 20, 2025, mandates a more aggressive trade enforcement stance, requiring agencies such as the U.S. Trade Representative (USTR), the Department of Commerce (DOC), and the International Trade Commission (ITC) to adopt stricter measures and expand trade cases against foreign trading partners.

The America First Trade Policy establishes several enforcement priorities that are likely to generate increased scrutiny and legal actions against foreign producers exporting into the U.S. market. The Policy:

• Directs the U.S. Trade Representative to review and identify unfair trade practices by other countries and recommend appropriate actions;
• Mandates a review of current trade agreements to assess their reciprocity and fairness to the U.S.;
• Instructs the Secretary of Commerce to review policies regarding the application of antidumping and countervailing duties (AD/CVD) laws, including procedures for conducting verifications.

Collectively, these directives pave the way for increased trade restrictions on foreign producers entering the U.S. market.

The Trade Policy Toolbox: Key Legal Mechanisms

The U.S. government possesses several legal mechanisms to impose trade restrictions. Each has established procedures and rules that affected parties can utilize to challenge or defend against the imposition of trade measures:

• International Emergency Economic Powers Act (IEEPA): Under 50 U.S.C. §§ 1701-1707, the President can regulate commerce after declaring a national emergency in response to an external threat. This includes imposing economic sanctions, blocking transactions, and freezing assets. In the case of Colombia, the administration would likely have relied on IEEPA to impose tariffs and financial restrictions as leverage. That stated, some commentators have questioned whether, under the law, it was appropriate for President Trump to have used IEEPA to resolve a diplomatic dispute on the manner of returning migrants.
• Section 232 of the Trade Expansion Act of 1962: Allows the President to adjust imports deemed a threat to national security, a definition President Trump has applied to economic and policy concerns.
• Section 301 of the Trade Act of 1974: Authorizes the U.S. Trade Representative to investigate and take action against foreign nations that engage in unfair trade practices. While traditionally used for trade disputes, this mechanism could be repurposed for broader political objectives.
• - Antidumping (AD) and Countervailing Duties (CVD): Under the Tariff Act of 1930, the U.S. can impose duties on foreign goods that are dumped below fair market value or benefit from government subsidies. The administration’s encouragement of stricter enforcement through Section 2(h) of the America First Trade Policy is expected to increase AD/CVD petitions, putting foreign exporters at greater risk of investigation; domestic industries may feel emboldened to file petitions, anticipating favorable outcomes under a policy framework that prioritizes aggressive enforcement of trade laws.

What This Means for Global Trade: Strategic Considerations

The America First Trade Policy represents a fundamental shift toward protectionism and heightened trade enforcement, creating an environment where trade cases, investigations, and enforcement actions are expected to rise significantly. The Colombia dispute serves as an early indicator of how the Trump Administration will use trade as leverage to achieve non-trade objectives, but the broader impact of this policy will extend far beyond this single case. The policy framework encourages more AD/CVD investigations, Section 301 cases, and broader scrutiny of trade agreements, all of which will affect businesses engaged in cross-border trade.

While this evolving trade landscape poses risks, each of these mechanisms—whether AD/CVD, Section 232, 301, or IEEPA—operates within a defined legal and procedural framework that provides avenues for companies to challenge and defend against restrictive measures. Businesses must be proactive in understanding these processes to mitigate potential disruptions.

Curtis is closely monitoring these developments and stands ready to provide strategic guidance to companies navigating compliance obligations, enforcement risks, and available defense mechanisms to ensure they are best positioned in this changing regulatory environment.