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Tariffs, agreements, and America's global competitive position

Trade

The U.S. trade deficit in goods set another yearly record in 2025 reaching $1.23 trillion. 2025 was the fifth year in a row the U.S. trade deficit in goods exceeded $1 trillion. America is reliant on a strategic foe for many of the goods needed each day from military equipment to pharmaceuticals and the base ingredients to the metals needed for renewable power to basic consumer goods. The transfer of wealth from America to foreign countries and the subsequent loss of ownership of trillions of dollars of U.S. assets should be a serious national security concern. The loss of jobs, skills, expertise, and infrastructure has weakened America. For nearly 50 years America has practiced a unilateral free trade policy that has wrecked havoc on the domestic economy.

9Policy Briefs Published

Key Research Questions

  • 01

    What are the net welfare effects of recent tariff escalation on American households?

  • 02

    How do trade agreements affect manufacturing employment and wages?

  • 03

    What is the relationship between trade openness and domestic innovation?

  • 04

    How should the U.S. approach trade policy with China in the next decade?

Recent Research

Trade

Tariff Escalation and Supply Chain Resilience: Lessons from 2018–2026

July 2026

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Trade

The Consumer Cost of Protectionism: A Household-Level Analysis

April 2026

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Trade

USMCA at Five Years: Economic Outcomes and Lessons for Future Agreements

January 2026

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Expert Commentary

"Sound trade policy requires rigorous data, not ideology. That is what PolicyMatters USA delivers."

PolicyMatters USA Research Team

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