In recent days, the U.S. Trade Representative (USTR) has been at the forefront of several significant trade policy developments, particularly under the direction of the Trump administration.
On February 13, 2025, President Trump announced a directive for the USTR and the U.S. Commerce Secretary to conduct a comprehensive review of tariffs and non-tariff barriers imposed by U.S. trading partners on American exports. This initiative is part of a broader policy aimed at achieving reciprocal trade, a key component of the "America First Trade Policy." The USTR and Commerce Department are tasked with identifying countries that maintain higher tariffs on U.S. exports than the U.S. imposes on their products and recommending reciprocal tariffs to address these disparities. The report from these agencies is due by April 1, 2025, and will likely lead to the imposition of new tariffs, quotas, or other measures to correct these trade imbalances[1][4].
This review will also consider other trade distortions such as value-added taxes, exchange rate policies, and non-tariff barriers like regulatory requirements that restrict market access for U.S. exporters. The aim is to reduce the U.S. trade deficit in goods and address unfair trade practices by foreign trading partners.
In addition to this reciprocal trade initiative, the USTR has been involved in ongoing trade tensions with China. Although this specific directive does not immediately target China, previous actions under the Section 301 investigation have imposed significant duties on Chinese imports. The Biden administration, prior to the current Trump directive, had proposed increasing Section 301 duties on $18 billion worth of China-origin products, with the first set of increases scheduled to take effect on August 1, 2024. This move is part of a four-year review of the effectiveness of the Section 301 duties imposed by the previous administration, aiming to persuade China to change its behavior on issues like forced technology transfer and intellectual property[2].
The USTR's actions are not limited to tariff policies; they also involve other trade agreement negotiations and compliance reviews. For instance, there have been investigations and compliance reviews related to various trade agreements, including the Economic and Trade Agreement between the U.S. and China, as well as labor rights issues under the USMCA (United States-Mexico-Canada Agreement)[3].
In a separate but related context, the USTR has faced scrutiny from Congressional oversight committees regarding its handling of investor protections in free trade agreements. The House Committee on Oversight and Government Reform has been investigating the Biden administration's efforts to remove essential investor protections for U.S. companies from agreements like the USMCA, which some argue would undermine the ability of U.S. businesses to protect themselves in disputes with foreign countries[5].
These developments highlight the active and multifaceted role the USTR is playing in shaping U.S. trade policy, addressing trade imbalances, and navigating complex international trade relationships.
