The Office of the U.S. Trade Representative’s trade policy agenda seeks to “double down on the America First Trade Policy in 2026 to capitalize on the wins from 2025 and keep momentum going for domestic producers and the U.S. economy.”
For more information on U.S. trade policy priorities and how they may affect your business, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.
According to USTR, evidence that the Trump administration’s trade policy is working is reflected in a decrease in the U.S. trade deficit on a year-over-year basis every month through December 2025, as well as in a 32 percent drop in the U.S. trade deficit with China from 2024 to 2025. In fact, the report highlights that for the first time since 2000 China is no longer the trading partner with which the U.S. has its largest trade deficit. “In one short year, the United States has substantially diversified its import sources and reduced its import dependency on China”, the report asserts.
The report also points to a 6.2 percent increase to a record $3.4 trillion in U.S. goods and services exports since the launch of the Agreement on Reciprocal Trade program, as well as a 9.9 percent to $63.9 billion rise in U.S. exports of capital goods, including civilian aircraft, computers, semiconductors, and telecommunications equipment. USTR also maintains that “domestic production has started to scale”, noting that in January a leading indicator based on surveys of U.S. manufacturers signaled that factory activity expanded for the first time in over two years.
This year, the administration intends to focus on the following six core areas in furtherance of its America First Trade Policy.
Continue the Agreement on Reciprocal Trade program
Highlighting that the ART program “has produced new broad-ranging commitments on market access, labor and environmental standards, and national and economic security, all while retaining the tariffs needed for our reindustrialization”, the administration intends to continue to push for lower foreign tariffs and non-tariff barriers with trading partners in the context of this program. The report states that while “the tools for implementing and maintaining tariffs in connection with the ARTs are subject to judicial review, and may change when appropriate, we expect to continue to work with our partners to implement these deals.”
Pursue robust enforcement of ARTs, other trade agreements, and U.S. trade laws
USTR will closely monitor the implementation of existing ART commitments and those embodied in forthcoming ARTs, as well as other existing trade agreements, and pursue enforcement efforts when necessary. USTR will also pursue broader measures to support customs enforcement and prevent duty evasion. At the same time, the agency intends to continue robust efforts to combat unreasonable and discriminatory measures that burden or restrict U.S. commerce through existing Section 301 actions.
USTR will evaluate whether it is appropriate to initiate new Section 301 investigations, or use other enforcement mechanisms, to address additional structural and cross-cutting distortions to the global trading system. Concerns that may be addressed include global overcapacity, abuses related to seafood and fishing, unfair domestic and export-driven agricultural policies, pharmaceutical pricing, digital services taxes and digital discrimination, and various other policies and practices.
Additionally, USTR will continue its work pursuant to ongoing Section 301 actions, including the investigation into China’s compliance with the Phase One Agreement and responsive actions with respect to Nicaragua’s labor practices, China’s shipbuilding practices, and China’s semiconductor practices.
The report also asserts that in May USTR will commence the statutorily required four-year review of the Section 301 action on forced technology transfer. And in July USTR will consider whether to take action in the Section 301 investigation involving the enforcement of U.S. rights in the World Trade Organization disputes involving large civil aircraft.
Secure supply chains for critical minerals and sectors
The U.S. will continue to pursue resilience of its critical supply chains by reshoring industry and diversifying trade across the entire value chain of multiple sectors. These efforts will include pharmaceuticals and medical equipment, metals and their downstream products, energy inputs and technologies, semiconductors and semiconductor equipment, auto parts and finished vehicles, and critical mineral production and refining.
The administration also intends to attract “constructive foreign investment” while actively using the Committee on Foreign Investment in the United States to guard against national security threats. The report highlights the “historic agreements” with Japan, Korea, and Taiwan and asserts that the provisions of the American First Investment Policy will be implemented “to promote productive, market-based investment in the United States.”
Conduct the USMCA review
According to the report, the upcoming USMCA review will include bilateral engagement with each country, as well as trilateral engagement where appropriate, to address existing challenges. USTR will negotiate firmly to resolve issues identified through the review and will recommend renewal only if such resolution can be achieved.
USMCA-related challenges outlined in the report include a surge in investment from companies domiciled in non-market economies in the region, the effects of industrial overcapacity on the three economies, a need to strengthen rules of origin across key sectors and include effective measures against transshipment and offshoring, growing U.S. trade deficits with both Canada and Mexico, Mexico’s preferential measures to benefit national champions in its energy and mining sectors, actions taken by Mexico that have undermined its overall investment climate, Mexico’s inadequate labor laws, Canadian policies that violate USMCA dairy market access commitments, and certain discriminatory and restrictive digital measures maintained by Canada.
Manage trade with China for reciprocity and balance
The administration will continue to engage to ensure that trade with China is based on reciprocity and balance. To that end, the U.S. “will seek to work with China so that both sides can better manage their bilateral trade with the aim of promoting economic benefits for producers and consumers in each country.”
The report asserts that by managing bilateral trade with arrangements negotiated among each country’s political leaders “the U.S.-China economic relationship can be improved for fairness, balance, and predictability”, highlighting the 2025 Korea deal between Presidents Trump and Xi as “the first step in that direction.” The U.S. intends to continue to closely monitor China’s compliance with that deal.
Promote American interests in international fora
The U.S. intends to advance the foundations of a new trading system based on reciprocity and balance in various plurilateral and multilateral economic engagements. For example, it will continue to lead at the Group of Seven (G7), Group of Twenty (G20), and the Organization for Economic Cooperation and Development to focus coordinated attention on such crucial issues as industrial overcapacity, economic imbalances, forced labor, and the weaponization of trade in food.
Furthermore, at the upcoming 14th WTO Ministerial Conference the U.S. “will be clear-eyed about the limited opportunities for outcomes and reform, but will continue to seek realistic outcomes including permanent extension of the moratorium on customs duties on electronic transmissions.”
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