A second Trump Administration will mean a continued focus on trade.
That became clear when the White House released its proposed fiscal 2021 budget, which increases spending for the U.S. Trade Representative by $4 million from $69 million in the current fiscal year. The additional funds are needed, the proposal says, to monitor completed deals, adjust existing tariffs and negotiate future trade agreements.
The budget notes that the USTR will be expected to execute provisions of both the China deal struck last month and the USMCA (U.S.-Mexico-Canada) trade pact.
Meanwhile, Reuters is reporting that President Trump told governors that the EU is “worse than China” when it comes to trade.
“Europe has been treating us very badly,” he said. “Over the last 10, 12 years, there’s been a tremendous deficit with Europe. They have barriers that are incredible … So we’re going to be starting that. They know that.”
European officials have signaled they are willing to work with Trump to address some irritants in the relationship. But they warn that “we will respond to U.S. tariffs, and we know how to structure them to be effective.”
The U.S. is the world’s biggest importer and disputes EU airline subsidies, agricultural trade barriers and EU plans to tax big U.S. digital companies.