On January 20, 2025, President Donald Trump issued a series of executive orders and memorandums that begin implementation of his policy agenda. While Trump’s executive orders addressed a range of issues, notably immigration, his orders and memorandums on trade, tax, climate, and energy outline his overall economic policy.
Trade
Trade Policy Memorandum
Trump’s memorandum to his cabinet on an “America First Trade Policy” outlines the administration’s “robust and reinvigorated trade policy that promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.” (see Trump Outlines “America First Trade Policy.”)
Tax
Memorandum Withdrawing U.S. from the OECD’s Global Tax Deal
Trump’s memorandum on the OECD’s Global Tax Deal states that the 2021 agreement for a global minimum corporate tax "has no force or effect in the United States.” The document also directs the Secretary of the Treasury to “investigate whether any foreign countries are not in compliance with any tax treaty with the United States or have any tax rules in place, or are likely to put tax rules in place, that are extraterritorial or disproportionately affect American companies.” It also directs the secretary to develop a “list of options for protective measures or other actions” to take in response to non-compliance. The Global Tax Deal, known officially as the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), aimed at reforming the international tax system with a “two-pillar” approach of: (1) reallocating taxing rights of multinational corporations to where the products or services are consumed; and (2) imposing a 15% minimum tax on global corporations.
Climate
Executive Order Withdrawing U.S. from International Climate Agreements
Trump’s executive order on “Putting America First In International Environmental Agreements” withdraws the United States from the 2016 Paris Agreement, which aims to reduce global carbon emissions. The order also withdraws the United States from “any agreement, pact, accord, or similar commitment made under the United Nations Framework Convention on Climate Change.” Lastly, it stops and revokes any “purported financial commitment made by the United States under the United Nations Framework Convention on Climate Change” and immediately rescinds and revokes the “U.S. International Climate Finance Plan.”
Energy
Executive Order on Energy Policy
Trump’s executive order on “Unleashing American Energy” establishes U.S. policy to “encourage energy production and exploration on federal lands and waters, including on the Outer Continental Shelf.” In other key areas of the order, it eliminates the “electric vehicle (EV) mandate” and terminates “state emissions waivers that function to limit sales of gasoline-powered automobiles.” It requires the heads of all agencies to review all “regulations, orders, guidance documents, policies, settlements, consent orders, and any other agency actions” that impose “an undue burden on the identification, development, or use of domestic energy resources…” The order revokes and rescinds 12 of President Joe Biden’s executive orders on energy and the environment and orders a number of studies and actions for “efficient permitting.” It also terminates the “Green New Deal” by requiring agencies immediately to pause the disbursement of Inflation Reduction Act funds.
Executive Order Declaring a National Energy Emergency
Trump issued an executive order on “Declaring a National Energy Emergency,” which directs agency actions in six main provisions: (1) use statutory emergency powers to facilitate approval of energy resources; (2) expedite the completion of energy infrastructure projects: (3) identify “planned or potential actions to facilitate the Nation’s energy supply that may be subject to emergency treatment” pursuant to the Clean Water Act (CWA); (4) identify “planned or potential actions to facilitate the Nation’s energy supply that may be subject to the regulation on consultations in emergencies” under the Endangered Species Act (ESA); (5) directs the ESA Committee to meet quarterly to “review and consider any lawful applications submitted by an agency, the Governor of a State, or any applicant for a permit or license who submits for exemption from obligations” under the ESA; (6) directs the secretaries of Interior, Energy, and Defense to conduct “an assessment of the Department of Defense’s ability to acquire and transport the energy, electricity, or fuels needed to protect the homeland and to conduct operations abroad.”
Executive Order on Oil Drilling in Alaska
Trump issued an executive order titled “Unleashing Alaska’s Extraordinary Resource Potential,” which establishes U.S. policy to “avail itself of Alaska’s vast lands and resources,” including the Arctic National Wildlife Refuge (ANWR). It directs federal agencies to “rescind, revoke, revise, amend, defer, or grant exemptions from any and all regulations, orders, guidance documents, policies, and any other similar agency actions that are inconsistent with the policy.” It directs agencies to expedite the permitting and leasing of energy projects. It prioritizes the development of Alaska’s liquefied natural gas (LNG) industry and related pipeline infrastructure. It also prioritizes the development and export of energy resources from Alaska, “including but not limited to the long-term viability of the Trans-Alaska Pipeline System...”
Memorandum on Temporary Withdrawal of Leasing Offshore Wind Energy Projects
Trump issued a memorandum that temporarily withdraws the Federal Outer Continental Shelf from offshore wind leasing and calls for a review of the Federal government’s leasing and permitting practices of wind energy projects. The withdrawal does not affect rights under existing leases in the withdrawn areas but calls for a “comprehensive review of the ecological, economic, and environmental necessity of terminating or amending” existing wind energy leases. The memorandum also stops development of the Lava Ridge Wind Project in Idaho.
Policy Impact
Trump’s executive orders and memorandums provide a statement of the administration’s policy goals and begin implementation of his policy agenda. While the policies outlined in some executive orders may go unchallenged, others, particularly the energy and climate policies, will face political and legal challenges. Notably, these policies could have a significant impact on U.S. foreign relations for the foreseeable future.