The United States is a prominent trader of goods and services, with foreign trade regulation falling within its constitutional purview.
Recent US tariff strategies have fundamentally altered domestic and global economic policy. Their strategies stem from an argument that trading partners’ attempts to suppress domestic wages and consumption reduce demand for U.S. exports while artificially increasing their own global competitiveness, leading to reduced export demand from America while simultaneously improving their own global competitiveness.
Global Partnerships
As global demand for energy, natural resources and materials continues to surge, we must collaborate with international organizations and businesses in order to maximize the full potential of our shared natural assets. Partnerships enable us to use natural resources more sustainably while reaching new audiences and markets; indeed, Sustainable Development Goal 17 specifically calls for partnerships as means of addressing complex global problems which cannot be tackled via individual efforts alone.
America has run large and persistent trade deficits with most of its trading partners for many years due to non-tariff barriers to U.S. exports imposed by non-tariff barriers that impede U.S. exports, such as differences in tariff rates between American and foreign goods, nonscientific sanitary and phytosanitary rules; regulatory hurdles and costs; differing compliance standards and enforcement; as well as currency practices such as undervaluation or manipulation that suppress domestic consumption while keeping imported products artificially priced competitive with American exports on world markets.
Pitt University is committed to maintaining a mission-driven focus on our global partnerships, while cultivating global awareness, diversity and inclusion in an ever-evolving world. As such, they developed a strategic plan which provides a clear path for assessing and supporting its various global inter-institutional partnerships. Current global partnership statuses can be tracked via GPITT which offers regular updates with data collected from schools and departments throughout Pitt’s campus – click here to find out more!
Local Impact
Structural asymmetries between tariff and non-tariff barriers have resulted in large and persistent annual goods trade deficits that threaten economic and national security. Such imbalances cannot continue in today’s globalized world economy, where domestic production forms the bedrock of economic security.
As the United States emerges from the Great Recession, reviving trade expansion will be vital for economic and job growth. Over the past five and one quarter years, exports contributed nearly one third of real economic growth while providing support to nearly 6 million American jobs.
Expanding trade through global partnerships will strengthen our economy, create more American jobs and enhance national competitiveness in the world marketplace. One key to reaching this goal lies in levelling out playing fields for American businesses and workers by challenging unfair tariff and non-tariff barriers abroad.
Small and more specialized metropolitan areas tend to be particularly susceptible to major changes in trade policy. A prime example is Columbus, Indiana – ranking first on the Brookings Institute’s list of “most trade-dependent cities,” thanks to its concentration of engine manufacturers such as Cummins Inc – who produce engines for many cars and trucks across America’s roads. Other top cities include Portland Oregon which produces specialty wood products as well as Houston which boasts an established chemical and petroleum byproduct industry.
U.S. Trade and Development Agency
Established in 1961, the U.S. Trade and Development Agency (USTDA) operates independently within the executive branch to foster trade between America and poorer countries. Serving as an intermediary between American companies and emerging markets that require their products, this small independent agency links American creativity and ingenuity with emerging infrastructure and development project opportunities by funding project preparation activities in host nations.
Projects initiated through USTDA can lead to both long-term economic development for host countries and high returns for U.S. businesses – creating more secure and prosperous futures for all Americans. Furthermore, this work also supports President Trump’s national security and foreign policy goals.
USTDA’s program areas correspond with President Obama’s economic priorities: East Asia and the Pacific, Europe/Eurasia/Latin America/Caribbean and Sub-Saharan Africa. Every dollar USTDA invests into infrastructure projects in these regions generates an average of $231 in export sales from U.S. exporters.
Since decades, Congress has directed the executive branch to pursue reduced reciprocal tariff rates with key trading partners through bilateral agreements and multilateral trade system negotiations. As a result, these structural asymmetries have resulted in large and persistent annual goods trade deficits with some of our major trading partners while artificially increasing their competitiveness on global markets. At the same time, domestic wages and consumption declined, further diminishing demand for our goods.
U.S. Trade Data
After World War II, Congress established a trade policy framework based on reciprocity. They directed their executive branch to negotiate bilateral and multilateral trade agreements to lower tariff rates with key trading partners on an equal footing; additionally they expected that liberalizing trade would result in foreign economies’ domestic consumption levels becoming similar to that of the United States while large and persistent goods trade deficits wouldn’t arise.
However, the disproportion between the United States and its major trading partners has arisen due to factors other than tariff rates alone. These include non-reciprocal differences in trade policies and practices; significant usage of non-tariff barriers (for instance technical, non-scientific sanitary rules and inadequate intellectual property protections); currency manipulation that has suppressed domestic consumption as well as weak labor, environmental, or regulatory standards and protections.
ITA is working towards greater transparency and accountability with trade data, providing an overview of trade flows and trends at the country, regional, industry level using TradeDataWeb as well as through monthly and annual international economic releases. In addition, ITA archives historical import and export data to be queried more granularly on DataWeb platform.