OREANDA-NEWS. President Donald Trump will require US agencies to repeal two regulations for every new one they create, a step that fits with the new administration's criticism of government rules that it says hurt the US economy.

The idea mirrors one endorsed by House Republicans that would create a regulatory "budget" requiring federal agencies to repeal existing regulations before issuing new rules.

"We are going to simplify, reduce and eliminate regulations," Trump said today. "We are getting rid of regulations to a massive extent. It could be 75pc, it could be more."

Trump repeatedly has spoken out against excessive rules affecting the US energy sector, manufacturing and small businesses. He picked his business partner and activist investor Carl Icahn to help him cut regulatory burdens on US businesses. Icahn is is not part of Trump's official White House team and it is not clear whether he played a role in the White House directive.

The practical effect of Trump's order depends on implementation. Agencies may be able to justify costly new regulations by repealing inconsequential ones - essentially an exercise in paperwork.

Alternatively, the White House may direct agencies to repeal rules based on regulatory costs, a process that would require a significant amount of time and effort. Every regulatory repeal would be subject to notice-and-comment rulemaking procedures that can take months to complete and could be challenged in court.

It remains unclear if Trump's order would require agencies to finish repealing existing regulations before issuing new ones, or if an agency could take those actions concurrently.

Many new rules are mandated by Congress, including a list of specific pipeline safety mandates codified in the 2016 legislation authorizing funding for the Pipeline and Hazardous Materials Safety Administration.

Trump blamed his predecessors for creating excessive regulatory burdens, saying he did not want to single out President Barack Obama for criticism. "It is a knock on all presidents."