Trump Pauses Enforcement of Anti-Bribery Law to Boost Competitiveness
President Donald Trump announced on January 23, 2025, that he has ordered a temporary pause on the enforcement of the 1977 Foreign Corrupt Practices Act (FCPA), a law that prohibits U.S. citizens and companies from bribing foreign officials to gain business advantages. The White House claims that halting the enforcement of this law will increase America's competitiveness in global markets, allowing U.S. companies to engage in practices that are common among international competitors, thus leveling the playing field.
The administration argues that overly strict enforcement of the FCPA has harmed American companies, preventing them from competing effectively against businesses in other countries that may not face the same legal restrictions. The White House contends that national security and economic interests are at risk if U.S. companies are unable to gain strategic commercial advantages due to these legal constraints.
Critics have strongly opposed the move, with Columbia University senior research scholar Richard Nephew calling it "a horrible idea" and pointing out that most U.S. companies value the FCPA for helping them resist bribery, which is seen as an unproductive and costly business practice. Similarly, attorney Joseph Azam, who has decades of experience with FCPA-related cases, called the decision a "big deal" and detrimental to both the U.S. and the rule of law.
Trump's pause on FCPA enforcement is part of a broader trend of policy changes impacting international trade. This month, the president also applied and then paused tariffs on goods from Canada and Mexico after negotiations with their leaders. Additionally, Trump imposed a 25% tariff on all foreign steel and aluminum, despite these materials being sourced largely from countries like Canada and Mexico.
Trump defended his tariffs, citing the $36 trillion national debt and large trade deficits with several nations, including Canada and Mexico. He emphasized that the U.S. should not allow other nations to take advantage of its economic position.
