In recent days, the U.S. Trade Representative (USTR) and related U.S. trade agencies have been at the forefront of several significant developments in international trade policy.
On February 13, 2025, President Trump directed the U.S. Commerce Secretary and the USTR to formulate and recommend "reciprocal tariffs" aimed at addressing bilateral trade deficits with countries that impose higher tariffs on U.S. exports. This directive requires the trade agencies to study the tariffs imposed by other countries on U.S. exports and recommend comparable tariffs on U.S. imports from those countries. The reports are due by April 1, 2025, and will also consider Value-Added Tax regimes, exchange rate distortions, and non-tariff barriers such as regulatory requirements that restrict market access for U.S. exporters. These recommendations could lead to the imposition of tariffs, quotas, or other measures, potentially in addition to existing tariffs on imports from China and on steel and aluminum[1].
This move is part of a broader strategy to rebalance trade relationships and protect U.S. industries. For instance, President Trump recently introduced a 10% duty on all imports from China under the International Emergency Economic Powers Act, effective February 4, 2025. This action was in response to concerns over the synthetic opioid supply chain and other trade issues. China retaliated with its own tariffs of 10% and 15% on select U.S. goods, effective February 10, 2025, and also tightened export controls on critical minerals and launched an antitrust investigation into Google[4].
The USTR has also been involved in other significant trade-related activities. Although not directly related to the current tariff announcements, the USTR has been active in reviewing compliance with various trade agreements. For example, the USTR announced a compliance review for the Economic and Trade Agreement between the U.S. and China, and initiated a Section 301 investigation into China's acts, policies, and practices related to the semiconductor industry. These actions reflect the ongoing efforts by the USTR to address trade imbalances and unfair trade practices[3].
Additionally, the USTR has been engaged in legislative and policy discussions. During a hearing on the Biden Administration's 2024 Trade Agenda, USTR Ambassador Katherine Tai emphasized the need to stand up to non-market policies and practices, particularly those of the People's Republic of China, which have impacted various U.S. industries. The USTR also supported the reauthorization of the Generalized System of Preferences (GSP) program with updates to reflect development goals and American economic values, including human rights[2].
These developments highlight the proactive role the USTR is playing in shaping U.S. trade policy, addressing trade deficits, and ensuring fair market access for U.S. exporters. As the USTR continues to work on these initiatives, it is likely that we will see further significant actions in the realm of international trade.
