Trump Administration Unveils New Trade Rebalancing Tool Even If Tariffs Are Struck Down

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The Trump administration is preparing a new trade policy tool called I-ACES (Import Authorization Certificate Exchange System) that would allow the U.S. to sell import authorization certificates directly to foreign governments running trade surpluses with the U.S., even if the president's tariffs are struck down by the Supreme Court. This system would force surplus countries to pay for continued access to U.S. markets, shifting the cost burden away from American consumers.

Why it matters

The I-ACES system aims to address the persistent U.S. trade deficits that have drained American wealth for decades, despite standard economic theory suggesting these imbalances should self-correct. By directly charging foreign governments for market access, the administration believes it can rebalance trade without relying on tariffs that have faced legal challenges.

The details

Under I-ACES, the U.S. Treasury would offer to sell Import Authorization Certificates directly to the governments of countries running bilateral trade surpluses with the U.S. The purchase price would equal 20-50% of the country's prior-year surplus. This would force surplus countries to either pay for continued access, accept losing access to U.S. markets, or open their own markets to more American goods. The U.S. would not dictate how the foreign governments distribute the certificates domestically.

• The Trump administration is preparing to unveil the I-ACES system.
• The Supreme Court is expected to rule on the legality of the president's tariffs in the coming months.

What’s next

The Trump administration is expected to formally unveil the I-ACES system in the coming weeks, ahead of the Supreme Court's anticipated ruling on the legality of the president's tariffs.