Opinion - Future actions for the Trump trade agenda

Throughout his presidency, Donald Trump has consistently prioritized trade matters, aiming to correct perceived imbalances in international commerce. He has leveraged presidential authority to promote policies, particularly tariffs, intended to encourage U.S. businesses to return production home and invest in domestic manufacturing. During my time in Congress, I aligned with many of the presidents concerns about American trade policy, and I continue to hold those views today.

For too long, the United States has allowed production to shift to countries with lower labor, environmental, and regulatory standards. This has enabled multinational corporations to increase profits on goods that are then imported back to the U.S. As a result, American manufacturing jobs have dramatically declined, investment in industry has fallen, and communities dependent on these sectors have suffered economically. Between 2000 and 2020, the nation lost approximately 5 million manufacturing jobs.

Strategically applied tariffs could help reverse this decline, potentially revitalizing U.S. manufacturing and production. However, another critical area for reform lies in anti-dumping laws, which are designed to protect American manufacturers from unfair trade practices. Unlike broad tariffs, anti-dumping duties target specific foreign entities that sell goods in the U.S. below market value to undercut domestic companies.

These protections are especially important for small and medium-sized manufacturers. Yet, even when successful, foreign companies sometimes circumvent these duties by rerouting shipments through third countries or rebranding products, undermining the effectiveness of enforcement. Such actions harm American businesses by reducing their customer base and market share.

U.S. Customs and Border Protection (CBP) reports that anti-dumping and countervailing cases rose from 540 in 2020 to 716 in 2024, a 33% increase, showing that unfair foreign practices remain a growing challenge. China accounts for 26% of these adjudicated cases, with countries like South Korea, India, Japan, and Italy also frequently involved. Despite the volume of violations, CBP collected only $2 billion in duties and $80 million in penalties in FY24.

Filing anti-dumping claims can be costly and time-consuming, often requiring specialized legal assistance. Approved claims are subject to annual reviews, further delaying enforcement. Gathering the necessary evidence to prove violations demands expensive and difficult-to-obtain information.

To strengthen enforcement, CBP should utilize new funding to better uphold anti-dumping laws and penalize evasion. The Commerce Department must modernize and streamline its procedures. Congress should consider legislation to prevent government agencies and contractors from using imports that violate anti-dumping regulations. Establishing an ombudsman to assist small and medium-sized businesses and introducing expedited processes for filings and reviews would reduce legal burdens. Additionally, the U.S. should push the World Trade Organization to update its anti-dumping rules, which have not been revised since the 1990s.

Revitalizing American manufacturing depends on enforcing fair competition. President Trumps trade policies can contribute to this goal, but only if protections against foreign entities that bypass U.S. trade laws are strengthened, enabling American companies and workers to prosper.

Dan Lipinski served as a U.S. Congressman from 2005 to 2021.

Author's Commentary: Strengthening Trade Protections for U.S. Manufacturing

Donald Trump's presidency saw a strong focus on trade policies aimed at rectifying the U.S.'s long-standing trade imbalances. As someone who supported many of these initiatives during my time in Congress, I continue to believe that the U.S. must prioritize its domestic manufacturing industry. The shift of production to countries with lower labor, environmental, and regulatory standards has hurt American workers and communities. For too long, multinational corporations have benefited from cheap labor, while American manufacturing jobs have disappeared.

The potential for revitalizing U.S. manufacturing lies in two key areas: strategically applied tariffs and the enforcement of anti-dumping laws. While tariffs are crucial, anti-dumping measures specifically target unfair practices by foreign companies, such as selling below market value to undermine U.S. businesses. Unfortunately, despite the increase in anti-dumping cases—up 33% from 2020 to 2024—enforcement has not been as effective as it should be. A significant issue is the evasion of these duties, with foreign companies rerouting shipments or rebranding products to bypass U.S. regulations.

The low collection of penalties and duties underscores the need for stronger enforcement. To address this, Customs and Border Protection (CBP) needs more resources to combat violations and ensure fair competition. In addition, streamlining legal procedures and offering support to small and medium-sized businesses would help reduce barriers to compliance. Modernizing the rules and pushing for changes to international trade frameworks, like those at the World Trade Organization, would also be beneficial.

Ultimately, the key to reinvigorating American manufacturing lies in ensuring that foreign competitors follow the same rules as domestic businesses. Strengthening anti-dumping laws and enforcement will provide a fairer, more competitive environment for U.S. companies, supporting economic growth and job creation in the manufacturing sector.

Sources:

• Opinion - Next steps for the Trump trade agenda