2.2.1 3.a - The United States and power in global trade
The United States is an AC with a large market, major exporting industries and considerable influence over trade rules and access. This lesson explains the sources and limits of that power, examines opportunities for growth, and interprets trade deficits alongside uneven effects on workers, consumers and places.
The United States as a core trading economy
The United States is an advanced country, or AC, in OCR's development framework and a core economy in many global production and financial networks. Core status concerns influence, capabilities and control over valuable activities; it does not mean every community is wealthy or every industry competitive.
A large consumer and business market gives overseas suppliers a reason to seek access. Firms' research, finance, design, brands and specialist services can capture value even where physical production takes place elsewhere. Universities, skills, infrastructure and institutions support these capabilities, while differences within the country affect who can use them.
The WTO's March 2026 statistics estimate that in 2025 the United States accounted for 13.2% of world merchandise imports and 8.3% of merchandise exports. A significant share of global demand gives policy changes potential effects well beyond US borders. Dependence is product-specific, however: market size does not prove that the United States can obtain any desired concession without costs.
US firms and government have different sources of influence. Firms negotiate contracts, control assets and select suppliers. Government can negotiate agreements, set or enforce market-access conditions and use trade policy in pursuit of strategic or domestic objectives. Private interests can support or oppose those choices, and different sectors may seek conflicting policies.
This makes the United States an active shaper of the trading system rather than simply a participant following changes made elsewhere. Its influence remains constrained by trading partners' responses, legal commitments, international production dependencies and domestic disagreement. “Strong power” is therefore a claim about comparatively extensive options, not unlimited control.
Partners, agreements and negotiating advantages
US trade advantages arise from interacting economic, political and social factors rather than from wealth alone. Productive capabilities create things to sell; institutions and negotiation shape access; people and networks allow firms to operate internationally.
Economic advantages include a large market, capital, research, specialist services and firms able to coordinate international activity. Social factors include an extensive skilled workforce, higher-education institutions and relationships linking firms and people across countries. These advantages are unevenly distributed and depend on investment and opportunity, rather than being inherent characteristics of a population.
Regional proximity supports dense connections with Canada and Mexico. The United States–Mexico–Canada Agreement entered into force on 1 July 2020, replacing NAFTA with revised rules. Agreements influence tariffs, origin requirements, services and dispute arrangements. The United States can use the attraction of its market in negotiation, but an agreement is also a set of obligations and reflects bargaining with partners.
Inter-regional connections remain important. The BEA and Census February 2026 release for 2025 records substantial goods trade with the EU, China and other Asian economies as well as the North American partners. US manufacturing and service firms may depend on imported inputs, so restricting trade can also affect domestic costs and competitiveness.
A dated example of attempting to drive change is USTR's September 2024 modification of tariffs on selected Chinese goods. USTR presented the action as protecting workers and firms and responding to concerns about technology-related practices. This demonstrates the ability to deploy policy instruments, not proof that they produced every intended benefit. Date-specific tariffs should not be treated as permanently unchanged rates.
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