On March 3, 2025, the Office of the U.S. Trade Representative (USTR) delivered President Donald Trump’s 2025 Trade Policy Agenda, 2024 Annual Report, and World Trade Organization at Thirty report to Congress. This year’s trade agenda seeks to strengthen the middle class and national defense and to address trade deficits by focusing on a “Production Economy” and implementing an “America First” approach in trade relations.
2024 Annual Report
The 2024 Annual Report provides a comprehensive overview of U.S. trade agreements, negotiations, and enforcement activities. It covers various trade initiatives, preference programs, and bilateral and multilateral engagements involving the United States and numerous countries. Specifically, the USTR in 2024 was actively involved in various trade agreements and negotiations, including (1) the Indo-Pacific Economic Framework for Prosperity (IPEF), (2) the United States–Taiwan Initiative on 21st-Century Trade, (3) the United States–Kenya Strategic Trade and Investment Partnership, and (4) the African Continental Free Trade Area Memorandum of Understanding. As in past years, the report notes that the United States continued to urge other countries to provide adequate IP protection and enforcement, addressing issues like copyright piracy, counterfeit products, and trade secret theft. The USTR also engaged with different countries to address issues like labor rights and improved enforcement of laws affecting labor, the environment, and agriculture.
2025 Trade Policy Agenda
The agenda outlines President Trump’s vision for addressing the economic and national security challenges facing the United States and follows the America First Trade Policy Presidential Memorandum released on his first day in office on January 20, 2025 (see Thompson Hine Update of January 22, 2025). This includes investigating the causes of the trade deficit, identifying unfair trade practices, and using leverage to open new markets for U.S. exports. The agenda emphasizes the need for a rebalanced trade policy that prioritizes American interests, focusing on a production-based economy to increase manufacturing jobs and the share of manufacturing in the gross domestic product (GDP).
A significant component of the agenda is the emphasis on trade agreements and an effort to “ensure that they help raise wages and grow our industrial base.” The agenda underscores the importance of reviewing existing trade agreements to ensure they operate in the national interest and do not allow third countries to benefit unfairly. The agenda calls for a thorough review of the United States-Mexico-Canada Agreement (USMCA) to “assess the impact of the USMCA on American workers, farmers, ranchers, service providers, and other businesses” in preparation for the mandated review of the agreement in July 2026.
The agenda places a strong focus on U.S. trade relations with China, “the single biggest source of [the U.S.] large and persistent trade deficit”. In doing so, it highlights the need to enforce the Phase One Agreement, which addresses critical issues related to technology transfer, intellectual property, and innovation. The USTR is tasked with assessing China’s compliance with the agreement and responding to additional unfair practices. This strategic approach aims to address the structural challenges distorting the global trading system, ultimately supporting U.S. workers, businesses, and national security. By taking a vigorous stance on trade enforcement, the agenda seeks to counter China’s non-market policies and practices, ensuring a level playing field for U.S. industries and promoting fair competition in the global market.
WTO at Thirty and U.S. Interests
The USTR’s Annual Report also includes a section on the World Trade Organization (WTO) and its effects on the interests of the United States, including “the costs and benefits to the United States of its participation in the WTO, and the value of the continued participation of the United States in the WTO.” This section of the report emphasizes that the WTO, established in 1995, has faced significant challenges in fulfilling its mission of promoting open, market-oriented policies and reducing trade barriers, particularly in addressing the non-market policies and practices of major economies like China. It argues that the dispute settlement system, especially the Appellate Body, has been criticized for overreach and creating new obligations beyond the agreed rules, undermining national sovereignty and the effectiveness of the WTO’s monitoring and enforcement functions. Despite these challenges, the United States remains committed to seeking reforms that can restore the WTO’s relevance and effectiveness. Achieving “meaningful reform” will require the active participation and cooperation of all WTO members, “including those that have benefited from the failure of the WTO to fulfill its objectives”.
In sum, the discussion on the WTO reflects an approach by the Trump administration to enhancing American economic interests, ensuring fair trade practices, and promoting national security. By focusing on rebalancing trade agreements, enforcing existing commitments, and advocating for meaningful reforms within the WTO, the administration aims to create a new global trading environment. These efforts are designed to support U.S. workers, middle class, businesses, and industries.
A press release outlining other key highlights of the report is available here. For an overview of the most recent past Annual Trade Policy Agenda and Annual Report, see Thompson Hine Update of March 5, 2024.