President Donald Trump could set up an executive action to investigate how U.S. trading partners use subsidies and "dumping" on imports and exports, a White House official said, according to The Washington Post.
The executive action would call for reviews of international trading practices. Retaliatory trade measures could follow, according to results of the investigation.
Export subsidies are a way foreign governments cut the prices of their own exports to lure international purchasers. The World Trade Organization has viewed that move as a rule violation, The Post reported.
U.S. manufacturers, along with Democrats and Republicans, have accused China of dumping, in which an item is exported at a price lower than its market value in order to undercut industries in other nations.
Trump's order could lead to trade actions against China. The steel and aluminum markets are a particular focus, as U.S. officials say China's trade policies in those areas have impacted U.S. manufacturers.
"The administration would use the results of that investigation to determine the best path forward, which could potentially include everything from no action at all to the levying of supplemental duties," a White House official told the Post under condition of anonymity. "But whichever action we take would be informed by the results of the investigation and not by predetermined conclusions."
The possible order shows economic populists and pragmatists are at odds within the Trump White House. The populists want proactive moves against foreign countries, while pragmatists prefer a more cautious approach, according to the Post.
The president signed two other executive orders about reviewing U.S. trade deficits and enforcing rules against dumping.
A group of senators Saturday urged Trump to warn Chinese President Xi Jinping against dumping, according to the Minneapolis Star Tribune.
Chinese steel produced using unfair practices is "profoundly harmful" to the U.S. economy and national security, the senators wrote.
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