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Chapter 26: Trade Policy — One-Pager

What This Chapter Covers

U.S. trade policy anchored by the Office of the United States Trade Representative (USTR), the WTO, and decades of negotiated agreements governs access to $6 trillion in annual goods and services flows. This chapter addresses how Project 2025 dismantled the rules-based trading system, eliminated worker protections, and weaponized tariffs, and proposes a comprehensive framework to restore fair, rules-based trade that works for American workers, not just multinational corporations.

What Project 2025 Did / The Current Crisis

  • Destroyed the Rules-Based Trading System: Unilateral tariff wars bypassed the WTO and alienated trading partners, triggering retaliation that cost American exporters billions in lost market access.
  • Eliminated Trade Adjustment Assistance: TAA, the social compact that made trade liberalization politically sustainable, was gutted, abandoning the 2.5 million workers displaced by competition since 2009.
  • Weaponized Tariffs as Political Tools: Tariffs were imposed without economic analysis and used as geopolitical leverage, raising consumer costs by an estimated $1,200+ per household annually.
  • Undermined USTR Independence: The Office of the U.S. Trade Representative was politicized and sidelined, with trade policy driven by White House impulse rather than strategic negotiation.
  • Abandoned Allied Trade Coalitions: Withdrawal from multilateral frameworks ceded trade standard-setting to China, which filled the vacuum with the Regional Comprehensive Economic Partnership covering 30% of global GDP.

Top Reforms Proposed

1. Restore and Strengthen Trade Adjustment Assistance

Rebuild TAA as a comprehensive worker support program with extended income support, retraining, relocation assistance, and healthcare coverage for workers displaced by trade competition, funded at $12 billion annually and authorized under the Trade Act of 1974 (19 U.S.C. 2291).

2. Rebuild the Rules-Based Multilateral Trading System

Re-engage with the WTO, restore the Appellate Body to resolve disputes, and lead multilateral negotiations that set labor and environmental standards as enforceable components of trade agreements rather than aspirational side letters.

3. Implement Worker-Centered Trade Policy

Require enforceable labor standards in all trade agreements, including ILO core conventions, ban imports produced with forced labor, and establish a Trade and Labor Standards Board to monitor compliance with authority to impose targeted sanctions.

4. Strategic Competition Framework for China

Replace chaotic tariff wars with a coordinated allied approach to Chinese industrial policy, including multilateral technology controls, supply chain diversification incentives, and enforcement of anti-dumping and countervailing duty laws.

5. Clean Energy Trade Leadership

Position the U.S. as leader in clean energy trade by negotiating climate-aligned trade agreements, establishing a carbon border adjustment mechanism, and ensuring trade policy supports rather than undermines the clean energy transition.

6. Small Business Export Expansion

Create dedicated programs to help small and medium enterprises access international markets, including export financing through a restored Export-Import Bank (cross-reference Chapter 23), technical assistance, and reduced regulatory burden for small exporters.

7. Supply Chain Resilience

Establish a Supply Chain Resilience Office within USTR to identify critical vulnerabilities, diversify sourcing away from adversary-dependent supply chains, and invest in domestic manufacturing capacity for essential goods.

Day One Executive Actions

  • Issue Executive Order reinstating Trade Adjustment Assistance programs at full funding levels
  • Direct USTR to begin WTO Appellate Body restoration negotiations with allied nations
  • Reverse unilateral tariffs imposed without economic analysis and begin strategic tariff review
  • Issue Executive Order requiring labor and environmental impact assessments for all trade actions
  • Direct Commerce Department to initiate comprehensive supply chain vulnerability review

By The Numbers

  • $6 trillion: Annual U.S. goods and services trade flows governed by trade agreements
  • $1,200+: Estimated additional annual cost per American household from unilateral tariffs
  • 2.5 million: Workers displaced by trade competition since 2009 who relied on TAA
  • 164 nations: WTO member states whose dispute resolution system was paralyzed by U.S. withdrawal
  • 30%: Share of global GDP covered by China-led RCEP after U.S. ceded multilateral leadership

Key Legislation Proposed

  • Trade Adjustment Assistance Reauthorization and Expansion Act -- Restore and expand TAA with $12 billion annual funding, extended benefits, and comprehensive retraining
  • Worker-Centered Trade Act -- Require enforceable labor and environmental standards in all future trade agreements with monitoring and sanctions authority
  • Supply Chain Resilience and Diversification Act -- Establish Supply Chain Resilience Office, fund domestic manufacturing of critical goods, and incentivize allied sourcing
  • Carbon Border Adjustment Act -- Impose carbon-content fees on imports from nations without equivalent climate commitments

How to Take Action

  • Read the full chapter: Chapter 26: Trade Policy
  • Contact your representatives: Demand worker-centered trade policy and restoration of Trade Adjustment Assistance
  • Share this one-pager: Help others understand how trade policy directly affects American workers and consumers
  • Join the movement: Support organizations advocating for fair trade and worker protections

Project 2029 | Section 4: The Economy | Last Updated: February 28, 2026 Full chapter: ../../../Section4_The_Economy/Chapter_26_Trade_Policy.md