President Trump is expected to make an announcement on Wednesday regarding global tariffs aimed at addressing unfair trade practices by other nations and ensuring that American exporters retain their competitive edge.
On Monday, the Office of the United States Trade Representative published an extensive report concerning international trade barriers, which may foreshadow the trade disputes the Trump administration intends to pursue.
In its annual report, the office outlined significant barriers that hinder U.S. exports in various countries. These challenges included tariffs alongside laws, regulations, and policies deemed detrimental to fair competition. Below are eight key trading partners that the president may target in this week’s tariff announcements.
China
The report devoted nearly 50 pages of its approximated 400-page length to China, a nation that has consistently faced scrutiny from American officials and businesses regarding trade practices.
It criticized China for employing industrial policies that promote specific sectors targeted for dominance, such as robotics, aerospace, new energy vehicles, and biopharmaceuticals. The trade representative’s office contended that these strategies often discriminate against or exploit foreign firms, enabling Chinese companies to capture market share at the expense of their international counterparts.
Furthermore, the office highlighted China’s failure to honor key provisions of the trade agreement established with Mr. Trump during his initial term, which included pledges to open its agricultural market and safeguard U.S. intellectual property rights. Trade statistics revealed that China significantly fell short of its commitments to purchase U.S. goods and services in 2020 and 2021, as noted in the report.
The United States also expressed concerns over China’s stringent restrictions on data transfer beyond its borders, complicating international business operations. The country has imposed barriers on U.S. service exports, including cloud computing, film production, internet services, express delivery, and legal services. Additionally, the report underlined China’s growing reliance on export controls and other limitations targeting the supply chains of the United States and its allies.
Canada
Regarding Canada, the trade representative highlighted the “supply management systems” regulating the dairy, chicken, turkey, and egg industries. These systems establish production quotas, price controls, and limit the amount of imports for these products. The report emphasized that this setup “significantly restricts the ability of U.S. producers to boost exports to Canada.”
While U.S. access to these markets was enhanced by the United States-Canada-Mexico Agreement, a trade deal negotiated by Mr. Trump during his first term, disputes over the dairy sector remain ongoing.
The United States also took issue with Canada’s digital services tax, which imposes a 3 percent fee on revenues from online marketplaces, digital advertising, and social media platforms. The U.S. argues that many digital service taxes are structured in a manner that discriminates against American firms, which dominate these sectors.
European Union
The trade representative acknowledged that the U.S. and the countries in the European Union maintain the largest economic relationship globally. However, it claimed that U.S. goods and services continue to encounter significant barriers in Europe. Many of these issues have persisted despite numerous bilateral discussions or attempts to resolve them through the World Trade Organization.
U.S. grievances regarding the European Union include regulations prohibiting certain chemicals or pesticides that are harmful to pollinators. The trade representative argued that numerous E.U. restrictions on food adversely affect trade without enhancing safety and are often not backed by scientific evidence. These include various bans on genetically modified crops and meat produced with growth-promoting hormones that are routinely used in the U.S.
Additionally, the United States criticized a proposed regulation aimed at curbing deforestation, which would require producers of cocoa, beef, palm oil, and other goods to trace their supply sources. The report also referenced Europe’s impending carbon border adjustment mechanism, which will tax certain imports based on the emissions linked to their production starting in 2026.
Moreover, the report indicated that Europe’s tech policies are detrimental, highlighting efforts to regulate online content sharing, restrict cross-border personal data transfers, and impose regulations on the operations of large tech companies, most of which are American.
India
The U.S.T.R. report highlighted India’s high tariffs on foreign products, which are the highest among major economies, including 50 percent levies on apples, corn, and motorcycles, and a 100 percent tariff on coffee, raisins, and walnuts.
The United States further criticized India for imposing various other obstacles to American businesses operating within its borders. These include requiring specific licenses or approvals, implementing quotas, imposing stringent requirements on dairy products, enforcing price ceilings on medical devices, establishing an uneven playing field for banks and insurance companies, and banning the importation of ethanol. Additionally, India offers substantial subsidies to its farming sector and other industries that distort market dynamics, according to the office.
Japan
While Japan maintains low average tariff rates and ranks as the fourth-largest market for U.S. agricultural products, the trade representative noted that Japan has erected barriers to U.S. goods at its borders, affecting exports of fish, seafood, leather, footwear, rice, potatoes, and pork.
The United States has also voiced serious concerns regarding limited access to Japan’s auto markets, asserting that challenges related to vehicle certification and testing, among other issues, hinder American-made vehicles from entering that market.
Mexico
The U.S.T.R. identified various regulatory issues in Mexico which can change suddenly, complicating the ability for U.S. exports to adhere to and anticipate regulatory changes. The report also mentioned Mexico’s backlog in approving pharmaceuticals and medical devices for market entry, alongside barriers affecting products made with herbicides and genetically modified materials, including the use of genetically engineered corn in tortillas.
In addition, it criticized Mexico for challenges related to online piracy. The report noted that the country has established systems that favor its state-owned oil and gas enterprise over private energy firms, grant the government increased control over lithium resources, and restrict foreign investment in sectors like ports and express delivery services.
South Korea
Seoul has removed tariffs on many U.S. agricultural exports under a free-trade agreement, yet it still imposes restrictions on imports of U.S. beef, pet food, blueberries, and other products. The U.S.T.R. also criticized barriers impacting foreign cloud service providers, along with bills introduced in South Korea to regulate digital sector companies. Furthermore, it pointed out that the country maintains hindrances to foreign investment and raised concerns over requirements like emissions certification in the auto industry.
Vietnam
The report highlighted Vietnam’s fixation on banning the import of specific products, including toys, used vehicle parts, and refurbished medical devices. It also drew attention to Vietnam’s restrictions on imported pharmaceuticals, medical devices, ethanol, and genetically modified corn and soybeans, along with the country’s data limitations and investment barriers.
