Trump personally ordered the bill be drafted, according to the report.
Axios quoted a source familiar with the bill as saying the bill was "insane" and Congress would never consent to it. Trump was briefed on the draft in late May, Axios said, and most officials thought it was unrealistic or unworkable, apart from Trump's trade adviser Peter Navarro.
'WTO has its flaws, but the 'United States Fair and Reciprocal Tariff Act, ' aka the U.S. FART Act, stinks.
The United States has imposed tariffs on European steel and aluminium imports and is conducting another national security study that could lead to tariffs on imports of cars and auto parts.
The U.S. helped establish the WTO in 1995 as a way to mediate trade disputes and head off tit-for-tat trade wars of the kind that are now enveloping the U.S., Canada, Mexico, China, and the European Union.
"He wrote on Twitter: "'The world is laughing at us, ' says Trump, before proposing the FART Act (Fair and Reciprocal Tariff Act)".
Anthony Scaramucci, who was Trump's communications director for 10 days a year ago, said the draft bill "stinks" because it would ask United States consumers to pay for tariffs.
President Donald Trump is really into starting and maintaining trade wars no matter how harmful, so it comes as no surprise that he wants to enact legislation allowing him to negotiate directly with other countries, ignoring precedent and rules and American interests.
But the European Union has warned the United States that imposing import tariffs on cars and vehicle parts would harm its own automotive industry and likely lead to counter-measures by its trading partners on $294 billion (£223 billion) of US exports.
White House spokeswoman Lindsay Walters told Axios that Trump has asked for ideas on how to address "the unfair imbalance of tariffs that put the U.S.at a disadvantage".
The White House didn't immediately respond to HuffPost's request for comment.
"I think the European Union - we're going to be meeting with them fairly soon, Trump said".
Trump also said U.S. officials would meet soon with European counterparts to discuss a spate over trade tariffs, saying the European Union wanted to "work something out".