The United States government has announced a new policy aimed at addressing the nation's trade deficit and improving its international trade relationships. The policy, known as the "Fair and Reciprocal Plan," seeks to counter non-reciprocal trading arrangements with foreign partners by determining reciprocal tariffs.

According to the memorandum, "The United States has one of the most open economies and has among the lowest average weighted tariff rates in the world." However, it notes that this openness has led to unfair treatment by trading partners, contributing to a large annual trade deficit. The memorandum states that this situation is "untenable" and poses threats to economic and national security.

The plan will involve a comprehensive examination of trade relationships with all U.S. trading partners. This includes assessing tariffs imposed on U.S. products, discriminatory taxes such as value-added tax, nontariff barriers, exchange rate policies detrimental to Americans, wage suppression, and other mercantilist policies.

The Secretary of Commerce and the United States Trade Representative are tasked with investigating harm from non-reciprocal trade arrangements and proposing remedies for more balanced trade relations. They will work in consultation with other relevant officials including the Secretary of Treasury and Secretary of Homeland Security.

Within 180 days from the date of this memorandum, an assessment will be conducted on fiscal impacts on the Federal Government by the Director of the Office of Management and Budget.

The memorandum also defines key terms such as "value-added tax" and "nontariff barrier," clarifying their roles in international trade dynamics.

Finally, it specifies that nothing in this memorandum should impair existing legal authorities or create enforceable rights against any U.S. entity or individual.