The Office of the U.S. Trade Representative has issued its annual National Trade Estimate report of foreign trade barriers just two days ahead of an expected announcement of sweeping new import tariffs that administration officials have said will be based in part on the extent of such barriers.
For more information on how your company can respond to U.S. and foreign trade barriers, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.
The NTE report describes “significant foreign barriers” to U.S. exports, U.S. foreign direct investment, and U.S. e-commerce in 59 markets, the same number as in 2024. USTR states that trade barriers may be broadly defined as government laws, regulations, policies, or practices (including non-market policies and practices) that distort or undermine fair competition. Examples include measures that protect domestic goods and services from foreign competition, artificially stimulate exports of particular domestic goods and services, or fail to provide adequate and effective protection of intellectual property rights. Non-market policies and practices, such as targeting of industrial sectors for dominance, non-market excess capacity, and distorting activities of state-owned or state-sponsored firms, may create economic and national security risks and undermine U.S. competitiveness.
As it has in years past, USTR states that this report identifies “barriers the U.S. Government seeks to remove.” However, the content of the report does not appear to change significantly from year to year and there is typically no indication as to what steps the U.S. may pursue to address the enumerated barriers, suggesting that progress in doing so has typically been slow.
The Trump administration could be attempting to accelerate that process. In February President Trump directed USTR and the Department of Commerce to lead an effort to investigate the harm caused by “unfair” trade policies and practices and non-tariff barriers – likely encompassing many of the concerns highlighted in the NTE report – imposed by foreign countries. The directive said this investigation would be used to determine “the equivalent of a reciprocal tariff with respect to each foreign trading partner.” Such tariffs are now expected to be announced April 2, and some administration officials have expressed hope that these tariffs will impel foreign trading partners to lower or eliminate barriers to trade with the U.S.
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