On May 18, 2017, Commerce and USTR held a public hearing on U.S. Trade Deficits. The hearing was held in response to Executive Order 13786, issued by President Trump, which instructed the agencies to prepare and submit an Omnibus Report on Significant Trade Deficits and provide the opportunity for public meetings if desired.

Commerce issued a Federal Register notice on April 17, 2017, requesting public comments on the trade deficits with Canada, China, the European Union, India, Indonesia, Japan, Korea, Malaysia, Mexico, Switzerland, Taiwan, Thailand, and Vietnam and posing broad questions about the trade deficit. Industry, trade groups, business associations, labor organizations, foreign governments, and individuals contributed 162 comments in response.

The Federal Register notice also invited interested parties to provide proposed testimony and requests to speak at the public hearing. Commerce then convened the 38 selected speakers who gave testimony and answered questions from representatives of Commerce, USTR, the Department of State, the Department of Treasury, the Department of Agriculture, the Department of Labor, the United States Agency for International Development, the Small Business Administration, and the Council of Economic Advisors.

Secretary Wilbur Ross opened the hearing, noting the wide variety of the commenters and perspectives. He noted the broad scope of topics that were addressed by written comments, and that the agencies intend to produce a comprehensive analysis of American trading patterns.

The speakers were divided into ten thematic panels by industry and affiliation. Many focused on the challenges posed by international trade to their industry and how these issues contributed to the trade deficit. Common concerns identified included foreign subsidies, foreign overcapacity, dumping of products in the U.S. and world markets, currency manipulation and misalignment, the U.S. tax code, limitations on foreign market access, and foreign non-tariff barriers.

Suggestions for government solutions included tax reform focused on the dual impact of value-added taxes and domestic U.S. taxes; changes to monetary policy (such as the end of the Strong Dollar policy, treating currency intervention as a countervailable subsidy, and a market access charge); changes to domestic law (such as strengthened Buy America and Berry Acts, revisions to the business judgment rule, and modifications to the injury standard in trade remedy cases); and increased trade law enforcement related to labelling, evasion, transshipment, and agency self-initiation of trade remedy proceedings.

The Omnibus Report on Significant Trade Deficits must be presented to President Trump on or before June 29, 2017, though Secretary Ross indicated that the report could be completed earlier.