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Trade policy choices influence which U.S. industries grow or contract, affecting manufacturing employment, farm exports and service-sector competitiveness.
In plain English
How America does business with the world.
Trade policy is the set of rules the U.S. uses to decide how goods and services move between America and the rest of the world. Tariffs are one tool; trade agreements, sanctions and export rules are others.
Simple example
The 2024 U.S.–EU trading relationship exceeded $975 billion in goods and services, according to the U.S. Trade Representative, making it a central focus of U.S. trade policy decisions.
Why it matters
What the term actually changes.
Consumer Costs
The mix of tariffs, agreements and regulations shapes the price and availability of products Americans buy every day, from cars and electronics to food and clothing.
Global Standing
Trade policy is closely tied to foreign policy, signaling alliances, leverage and priorities to partners and competitors around the world.
How it works
The mechanics, in practice.
Shared Authority
Congress writes trade laws and approves major agreements, while the executive branch negotiates deals and administers tariffs under powers Congress has delegated.
Multiple Tools
Policymakers can adjust tariffs, sign free-trade agreements, impose quotas, offer subsidies, or use export controls to advance economic and strategic goals.
Dispute Resolution
Trade disputes are often handled through bilateral talks, the World Trade Organization, or mechanisms built into specific agreements such as the USMCA.
Related guide
How do tariffs work as a tool of U.S. trade policy?
A look at who sets tariffs, how they function, and the competing arguments over making them a centerpiece of trade strategy.
Read the guide → Related issue brief
Should the U.S. use tariffs as a primary tool of trade policy?
As Washington leans more heavily on import duties, Americans are divided over whether tariffs should anchor U.S. trade strategy.
Read the brief →You’ve learned the term. Now vote.
Should the United States use tariffs as a primary tool of trade policy?
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