WASHINGTON -- U.S. President Donald Tramp is expected to sign a new executive order on Friday aimed at reducing the country's trade deficit with China, Japan and a number of other countries, Commerce Secretary Wilbur Ross told reporters on Thursday.
The order will require relevant authorities to conduct reviews on the fairness of trade practices with partner countries, such as export subsidies and nontariff barriers. If anything deemed unfair is identified, Washington will take action to correct the imbalance in accordance with U.S. domestic law.
Ross singled out China and Japan as two of the trade partners with which the U.S. has a large trade deficit. He also said his department will conduct an in-depth investigation into transactions with such partners, as well as imbalanced exchange rates against the dollar.
The order will also cover studies on the reality of production gluts and government subsidies for exports in partner countries.
Analysis will be conducted on how tax systems in partner countries are linked to trade imbalance. The Trump administration has claimed that value-added taxes in other countries, including consumption tax in Japan, has helped unfairly raise prices of U.S. products abroad.