The Foreign Corrupt Practices Act puts US companies at a disadvantage on the global stage, Trump said
Trump signs executive order pausing Foreign Corrupt Practices Act
President Donald Trump signed an executive order Monday pausing the enforcement of an act that criminalizes U.S. businesses bribing foreign officials. The order is aimed at restoring American economic competitiveness.
President Donald Trump has paused the enforcement of a law that criminalizes American businesses that bribe foreign officials in an executive order signed on Monday.
The order, which directs the Department of Justice (DOJ) to stop enforcing the Foreign Corrupt Practices Act (FCPA), is intended to further American economic growth by eliminating excessive barriers to American commerce abroad.
"It sounds good on paper, but in practicality, it's a disaster," Trump said about the FCPA.
"It means that if an American goes over to a foreign country and starts doing business over there illegally, legitimately or otherwise, it's almost a guaranteed investigation indictment. And nobody wants to do business with the Americans because of it," Trump continued.
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President Donald Trump holds up a signed executive order pausing the FCPA on Feb. 10, 2025, in Washington, D.C. (Reuters)
According to the DOJ, the FCPA was enacted in 1977 to make it "unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business."
However, the act has been "stretched beyond proper bounds and abused in a manner that harms the interests of the United States." Enforcing the FCPA also "actively harms American economic competitiveness and, therefore, national security," the order states.
President Donald Trump signed an executive order pausing the FCPA on Monday, in order to further American economic and national security. (Reuters)
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In an effort to eliminate excessive barriers to American businesses overseas, U.S. Attorney General Pam Bondi has also been directed, through the executive order, to review the FCPA for the following 180 days and revise reasonable enforcement guidelines.
The Department of Justice headquarters can no longer enforce the Foreign Corrupt Practices Act under a new executive order President Donald Trump signed on Monday. (Drew Angerer)
"President Trump is stopping excessive, unpredictable FCPA enforcement that makes American companies less competitive," a White House fact sheet stated. "U.S. companies are harmed by FCPA overenforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field."
"The title is so lovely, but it's an absolutely horror show for America," Trump said. "So we’re signing it because that's what we have to do to make it good… It's going to mean a lot more business for America."
Bonny Chu is a Digital Production Assistant at Fox News Digital.
