Mar 06 2025 3 mins
In the last few days, the U.S. Trade Representative (USTR) has been at the forefront of several significant trade policy developments, reflecting the ongoing efforts of the U.S. government to address what it perceives as unfair and non-reciprocal trade practices.
On February 21, 2025, President Trump issued a memorandum directing the USTR to take several key actions. One of these actions involves establishing a notice and comment process to gather input on proposed "reciprocal tariffs" announced on February 13, 2025. This initiative aims to align U.S. import duties with those imposed by other nations, addressing the long-standing issue of higher tariffs on U.S. goods compared to those imposed on imports from other countries[1][3][5].
Another significant step involves the USTR collecting input on potential trade actions to address China’s practices in the maritime, logistics, and shipbuilding sectors. This follows findings from the previous administration that China was engaged in practices targeting these sectors for dominance. The USTR is seeking comments from interested parties, with written comments due by March 24, 2025, and a hearing scheduled for the same date[1][4].
The USTR is also formulating responses to digital services taxes imposed by other countries, which are seen as hindering the success of American digital services companies. This includes renewing Section 301 trade actions against countries like Austria, France, Italy, Spain, Turkey, and the United Kingdom, and considering dispute settlement against Canada and Mexico under the US-Mexico-Canada Agreement. The USTR is exploring various measures, including recommended tariffs, actions to address content mandates, and a mechanism for American businesses to report harmful foreign tax and regulatory practices. Reports and recommendations on these issues are due to the President by April 1, 2025[1].
In addition to these initiatives, the USTR has been involved in trade disputes with several countries. Effective March 4, 2025, the U.S. imposed tariffs on imports from Canada and Mexico (25 percent) and China (10 percent). These tariffs were implemented under the International Emergency Economic Powers Act (IEEPA) and have prompted retaliatory measures from these countries. Canada has announced immediate retaliation against U.S. products, while Mexico and China have also outlined their plans for retaliatory actions[5].
The USTR has also been critical of Canada’s digital services tax (DST), which it believes violates Canada’s trade commitments under the USMCA. The DST imposes a 3% tax on revenues from online marketplaces, targeted advertising, social media platforms, and user data, affecting companies with significant global and Canadian digital services revenue. The USTR has requested a review under the USMCA, arguing that the tax discriminates against U.S. companies and is inconsistent with the agreement’s requirements for equal treatment[2].
These recent actions and decisions underscore the USTR’s proactive role in shaping U.S. trade policy, particularly in addressing perceived imbalances and unfair practices in international trade. As the USTR continues to solicit comments and formulate new trade measures, these developments are likely to have significant implications for trade relations between the U.S. and its global partners.
On February 21, 2025, President Trump issued a memorandum directing the USTR to take several key actions. One of these actions involves establishing a notice and comment process to gather input on proposed "reciprocal tariffs" announced on February 13, 2025. This initiative aims to align U.S. import duties with those imposed by other nations, addressing the long-standing issue of higher tariffs on U.S. goods compared to those imposed on imports from other countries[1][3][5].
Another significant step involves the USTR collecting input on potential trade actions to address China’s practices in the maritime, logistics, and shipbuilding sectors. This follows findings from the previous administration that China was engaged in practices targeting these sectors for dominance. The USTR is seeking comments from interested parties, with written comments due by March 24, 2025, and a hearing scheduled for the same date[1][4].
The USTR is also formulating responses to digital services taxes imposed by other countries, which are seen as hindering the success of American digital services companies. This includes renewing Section 301 trade actions against countries like Austria, France, Italy, Spain, Turkey, and the United Kingdom, and considering dispute settlement against Canada and Mexico under the US-Mexico-Canada Agreement. The USTR is exploring various measures, including recommended tariffs, actions to address content mandates, and a mechanism for American businesses to report harmful foreign tax and regulatory practices. Reports and recommendations on these issues are due to the President by April 1, 2025[1].
In addition to these initiatives, the USTR has been involved in trade disputes with several countries. Effective March 4, 2025, the U.S. imposed tariffs on imports from Canada and Mexico (25 percent) and China (10 percent). These tariffs were implemented under the International Emergency Economic Powers Act (IEEPA) and have prompted retaliatory measures from these countries. Canada has announced immediate retaliation against U.S. products, while Mexico and China have also outlined their plans for retaliatory actions[5].
The USTR has also been critical of Canada’s digital services tax (DST), which it believes violates Canada’s trade commitments under the USMCA. The DST imposes a 3% tax on revenues from online marketplaces, targeted advertising, social media platforms, and user data, affecting companies with significant global and Canadian digital services revenue. The USTR has requested a review under the USMCA, arguing that the tax discriminates against U.S. companies and is inconsistent with the agreement’s requirements for equal treatment[2].
These recent actions and decisions underscore the USTR’s proactive role in shaping U.S. trade policy, particularly in addressing perceived imbalances and unfair practices in international trade. As the USTR continues to solicit comments and formulate new trade measures, these developments are likely to have significant implications for trade relations between the U.S. and its global partners.