The Policy Makers

US international trade policy is regulated by a number of actors and bodies with, as noted above, powers that are enshrined in the US Constitution, delineated by the US Congress in federal statutes and implemented through federal agency regulations. An overview of their roles follows below.

The US Congress

The ultimate authority for US trade policy lies with the US Congress, the role of which is to levy taxes and regulate commerce with foreign nations.  It does this through delegations of authority, methods and policies set out in federal statutes.  Congress can adjust US trade policy at any time and has an up or down vote on any international trade agreement negotiated by the President that requires changes in US law.  Committees of jurisdiction include Senate Committees on Foreign Relations; Finance; Banking, Housing and Urban Affairs; Commerce, Science and Transportation; as well as, House Committees on Ways and Means; Foreign Affairs; Energy and Commerce.

The Administration

The US Congress has, in many cases, granted the President the ultimate authority for trade actions that regulate commerce or levy tariffs.  In some cases, the President delegates this authority and, in other cases, Congress delegates the authority to one of the federal agencies.  But in many cases, such as those invoked most recently, the ultimate decision lies with the President.  In addition, the President has the authority from the Constitution to make treaties with foreign countries, if two-thirds of the Senate concur.  Accordingly, a number of factors can come into play in setting an administration’s trade policy, including economics, foreign policy, domestic policy, politics and election cycles.

Regulatory Bodies

The operation of US trade policy is undertaken mainly by federal agencies, in accordance with regulations implementing federal statutes and policies set by the Administration.  The main regulatory bodies include the following:

  • The United States Trade Representative.  Negotiates most trade agreements on goods, services and intellectual property.  While the Office of the US Trade Representative is generally considered to be oriented more toward free trade, in recent years it has aggressively imposed tariffs against Chinese imports and failed to implement rulings of the World Trade Organization.  

  • The US Department of Commerce.  Enforces US trade laws and helps US exporters.  Given these responsibilities, the Commerce Department generally takes a more hardline stance than the other trade agencies. 

  • The US Department of Treasury. Helps negotiate investment agreements, chairs the Committee on Foreign Investment in the United States and implements US economic sanctions. The Treasury Department is generally pro-trade and in favor of open investment.

  • The US Department of State. Focused on bilateral and multilateral relationships. Given this focus, the State Department is generally more pro-trade oriented.  It also administers the International Traffic in Arms Regulations, which regulate imports and exports of defense articles and services.

  • The US Department of Agriculture. Negotiates the agricultural components of agreements and promotes US agricultural exports.  

  • The US Department of Homeland Security.  Houses US Customs and Border Protection and works with the private sector to secure US supply chains.  Given its responsibilities, Homeland Security  generally focuses on the national security ramifications of international trade and foreign investment.  

  • Customs and Border Protection.  Assesses duties, enforces US trade laws and tracks imports at US border.  As such, CBP has an administrative function and a duty to protect US revenue. 

  • The US Department of Defense.  Weighs in on the national security impact of international trade agreements and any changes in levels of sensitive imports.  Like the Department of Homeland Security,  its focus is generally on the national security ramifications of international trade and foreign investment. 

  • The US International Trade Commission.  Makes key decisions in a range of international trade disputes and conducts economic analyses of international trade issues. As an independent, nonpartisan, quasi-judicial federal agency, the ITC is generally more neutral than many of the other agencies.

The World Trade Organization

As a member of the World Trade Organization, a global body that establishes the rules of international trade, the United States is generally supposed to ensure that its  trade laws and policies are in compliance with  WTO rules and the WTO agreements to which the United States is a signatory.