Trade

Preserving Liberation Day Successes

The United States faces urgent economic and national security emergencies from ballooning trade deficits and the influx of fentanyl. The U.S. has run trade deficits for 50 consecutive years, a streak unparalleled in American history, reaching a record high goods deficit of $1.2 trillion in 2024. These consistent and widening trade deficits reflect an erosion of American global shares in key industries such as semiconductors and steel, eviscerating its manufacturing base at the expense of America’s most powerful geopolitical adversary, China.

Request for Public Comments Regarding Prohibition on Use of Reputation Risk by Regulators

America First Policy Institute (AFPI) is pleased to submit its comments on the Federal Deposit Insurance Corporation’s (FDIC) and Office of Comptroller of the Currency (OCC), collectively referred to here as “the agencies,” proposed rule that would prohibit the use of reputation risk from their supervisory programs. AFPI supports the agencies proposed rule as it will ensure that regulators are prohibited from pressuring financial institutions to deny or terminate banking privileges for political, religious, or other non-pecuniary reasons. Accordingly, removing reputation risk will strengthen the safety and soundness of the financial system by protecting financial institutions and their customers from regulatory overreach.

Setting the Bearings for A Rocky Road Ahead

On October 10, 2025, the Chinese Communist Party (CCP) introduced new export controls for both critical minerals[1] (CMs) and rare earth elements[2] (REEs). The CCP implemented a new rule that specifies exports that are used in U.S. military equipment, or those with dual-use applications for military assets, even those containing as little as 0.1% of REEs, are prohibited from being sent to the United States. In response, the Trump Administration moved to secure the United States' national security interests by proposing a 100% tariff on all Chinese goods by November 1, 2025. After Chairman Xi and President Trump met at APEC 2025, China announced that it would delay its export controls for a year, with the U.S. agreeing to do the same on its tariffs.

The Impacts of America First Trade Deals

In 2024 the United States ran a $1.2 trillion goods trade deficit, the largest on record and equal to roughly 4.1% of GDP. For context, prior to the turn of the century, the goods deficit typically hovered around 1.5% of GDP. The widening gap particularly during the last two decades reflects growing trade imbalances and the steady offshoring of U.S. manufacturing, which have left supply chains, and thereby U.S. economic security, vulnerable during times of uncertainty.

How Steel Tariffs Protect American Jobs: Todd Leebow on Fixing the U.S. Steel Industry