05-29-2025

World Trade Week, 2025

ProclamationView the Original .pdf
View the Original .pdf

The 1-Minute Brief

What: A presidential proclamation designating May 18-24, 2025, as World Trade Week. It reaffirms the administration's "America First" trade policy, emphasizing the use of tariffs to protect American workers and industries, combat unfair trade practices, and bring jobs back to the United States.

Money: The proclamation itself does not appropriate funds. However, the tariff policies it champions have significant financial impacts. Studies on tariffs from 2018-2020 found they led to higher prices for U.S. consumers and firms. One estimate claimed the tariffs cost the average American household around $1,300 annually. The Congressional Budget Office (CBO) projected that the trade barriers would reduce real GDP. Conversely, tariff collection raises government revenue, amounting to approximately $78.7 billion between 2018 and 2020.

Your Impact: The average American is most likely to experience the effects of the policies described through the prices of consumer goods. Tariffs on imported products can increase their cost, while the policy's supporters argue it protects and creates domestic jobs in sectors like manufacturing.

Status: This is a proclamation issued by the President of the United States on May 24, 2025. It is an official declaration of policy and commemoration, but not a piece of legislation.

What's Actually in the Bill

This proclamation outlines the administration's core philosophy on international trade, framing it as a tool to serve American workers and national interests. It is not a law but a declaration of the President's priorities and a justification for actions taken, such as imposing tariffs and negotiating new trade deals.

Core Provisions:

  • The text designates May 18 through May 24, 2025, as World Trade Week.
  • It commits the administration to combatting "unfair trade practices."
  • It highlights the use of "reciprocal tariffs" to protect American manufacturing.
  • It mentions tariffs enacted to "stop the flow of fentanyl into America."
  • It points to a new United States-United Kingdom trade agreement as a key achievement.

Stated Purpose (from the Sponsors):

The proclamation's stated goal is to create a future that protects American workers, prioritizes their dreams over corporate profits, raises wages, and strengthens American industry.

  1. To deliver a better life for all Americans, especially those whose jobs were shipped overseas.
  2. To use tariffs to stop the "hollowing out" of American manufacturing and to prevent the importation of illicit drugs.
  3. To build a "new Golden Age for America" through strong economic growth and "America First" trade policies.

Key Facts:

Affected Sectors: Manufacturing, Agriculture, Technology, Automotive, and Steel.
Timeline: The proclamation was issued on May 24, 2025, and references ongoing trade policies and a recent agreement with the UK finalized in May 2025.
Scope: The policies described affect all international trade partners of the United States, with specific mention of China and the United Kingdom.

The Backstory: How We Got Here

Timeline of Events:

Post-WWII Consensus (1945-1990s):

Following World War II, the United States led a global shift towards free trade, promoting institutions like the General Agreement on Tariffs and Trade (GATT), which later became the World Trade Organization (WTO). The Republican party, which had historically been protectionist, largely embraced free trade principles during this period.

Rise of Globalization and Bipartisan Skepticism (1990s-2010s):

The North American Free Trade Agreement (NAFTA) and China's entry into the WTO marked a period of accelerated globalization. This era also saw a decline in U.S. manufacturing employment. Between 1979 and 2019, the U.S. lost about 6.5 million manufacturing jobs. This decline led to growing skepticism of free trade deals within both parties, particularly from labor unions who traditionally aligned with Democrats.

The "America First" Era (2017-Present):

Donald Trump's 2016 campaign brought the slogan "America First"—a term with historical roots in pre-WWII non-interventionism—to the forefront of trade policy. His administration withdrew from the Trans-Pacific Partnership (TPP) and imposed significant tariffs, particularly on China, steel, and aluminum, starting in 2018. These actions marked a sharp departure from the post-war Republican orthodoxy of free trade. The Biden administration kept most of these tariffs in place. This proclamation continues that policy trajectory, emphasizing tariffs and bilateral deals.

Why Now? The Political Calculus:

  • Fulfillment of Campaign Promises: The proclamation serves as a reaffirmation of the core economic message that was central to the President's platform, appealing to a political base that feels left behind by globalization.
  • Economic Pressure: Despite a national recovery in manufacturing jobs to pre-pandemic levels, growth has been uneven, with some traditional manufacturing states (the "Rust Belt") not seeing the same rebound as states in the Sun Belt. The administration is using this policy to address those economic anxieties.
  • Recent Trade Deal: The announcement of the U.S.-U.K. Economic Prosperity Deal in May 2025 provides a concrete example for the administration to showcase its strategy of pursuing bilateral agreements instead of large, multilateral ones.

Your Real-World Impact

The Direct Answer: This directly affects specific groups like manufacturing workers and farmers, as well as most Americans indirectly through the prices of consumer goods.

What Could Change for You:

Potential Benefits:

  • Job Security/Growth: Workers in domestic industries protected by tariffs, such as steel and auto manufacturing, may experience greater job security or see new job opportunities. Supporters argue that these policies incentivize companies to keep or relocate production in the U.S.
  • Targeted Agricultural Exports: The new U.S.-U.K. trade deal is expected to create a $5 billion opportunity for new exports for American farmers, ranchers, and producers, including over $700 million in ethanol and $250 million in beef.

Possible Disruptions or Costs:

Short-term (Weeks to Months):

  • Higher Consumer Prices: Tariffs on imported goods are often passed on to consumers. Studies of the 2018-2019 tariffs found that U.S. consumers bore the brunt of the costs through higher prices. This can affect everything from electronics and clothing to household appliances.
  • Retaliatory Tariffs: Foreign countries often respond to U.S. tariffs by imposing their own on American exports. This particularly hurt the U.S. agricultural sector during the 2018-2020 trade war, requiring government subsidies to offset losses.

Long-term:

  • Economic Slowdown: The Congressional Budget Office and the Federal Reserve have found that tariffs can lead to a reduction in overall U.S. GDP by raising costs for businesses and creating policy uncertainty.
  • Supply Chain Adjustments: Businesses that rely on imported parts may face higher costs and disruptions, potentially leading them to alter their supply chains, which can be a lengthy and expensive process.

Who's Most Affected:

Primary Groups:

  • U.S. Manufacturing Workers: Directly impacted by policies designed to protect their industries from foreign competition.
  • U.S. Farmers and Ranchers: Affected by both new export opportunities from bilateral deals and the risk of retaliatory tariffs from trade disputes.
  • American Consumers: Face potentially higher prices on a wide range of imported goods.

Secondary Groups:

  • U.S. Port Workers and Logistics Companies: Changes in trade volumes can affect employment and business in the shipping and transportation industries.
  • Businesses Relying on Imports: Companies that use imported materials or components in their production process face increased costs.

Regional Impact:

  • The industrial Midwest ("Rust Belt") is a key focus of job protection policies.
  • Agricultural states are heavily impacted by retaliatory tariffs and new export market openings.
  • States with major ports could see economic shifts based on changing trade flows.

Bottom Line: The policies championed in this proclamation could offer job protection for some domestic industries but may result in higher prices on many goods for the average American family.

Where the Parties Stand

Republican Position: "America First"

Core Stance: The party has largely shifted from its historical free-trade stance to one that supports using tariffs to protect American industries and rebalance trade deficits.

Their Arguments:

  • ✓ Tariffs are a necessary tool to combat unfair trade practices by countries like China.
  • ✓ Protecting domestic manufacturing and securing national supply chains is critical for economic and national security.
  • ✓ Bilateral trade deals are preferable to multilateral agreements that undermine U.S. sovereignty.
  • ⚠️ Some free-market Republicans remain wary of tariffs, arguing they are taxes on American consumers and lead to negative economic consequences like inflation.

Legislative Strategy: To support the President's use of tariff authority and champion reciprocal trade legislation. Some more traditional Republicans may seek to limit the President's authority to impose tariffs without Congressional approval.

Democratic Position: "Targeted and Smart, Not Chaotic"

Core Stance: Democrats are not inherently anti-tariff but generally oppose broad, unilateral tariffs, preferring a more targeted approach and working with international allies.

Their Arguments:

  • ✓ Acknowledging that certain tariffs can be an important tool to protect workers and counter unfair competition.
  • ⚠️ Criticize the "chaos" and instability of broadside tariffs, arguing they hurt American consumers, farmers, and businesses caught in the crossfire.
  • ✗ Oppose trade policies that alienate allies and undermine the international, rules-based trading system.

Legislative Strategy: To advocate for stronger labor and environmental standards in trade agreements and to challenge what they see as erratic tariff actions that harm the economy. There is near-unanimous support for terminating the emergency authority used for certain tariffs.

Constitutional Check

The Verdict: ⚠️ Questionable

Basis of Authority:

The President's authority to issue proclamations is not explicitly defined in the Constitution but is an implied power under Article II. These documents are often ceremonial but can have the force of law if they are based on a specific power granted to the President by the Constitution or by a statute passed by Congress. The tariffs mentioned are often justified under specific trade laws.

U.S. Constitution, Article II, Section 1: "The executive Power shall be vested in a President of the United States of America."

Constitutional Implications:

[Delegation of Powers]: The primary constitutional issue revolves around whether Congress has improperly delegated its authority to regulate foreign commerce and levy taxes (tariffs) to the President. The Constitution explicitly grants Congress the power "To regulate Commerce with foreign Nations" (Article I, Section 8).
[Precedent]: Congress has passed laws, such as Section 232 of the Trade Expansion Act of 1962, that delegate authority to the President to impose tariffs for national security reasons. The Supreme Court has so far declined to hear challenges to the constitutionality of these tariffs, letting lower court decisions that upheld them stand.
[Federalism]: This is primarily an issue of federal power versus presidential authority, not a federalism issue concerning states' rights.

Potential Legal Challenges:

The use of statutes like the International Emergency Economic Powers Act (IEEPA) to impose broad "reciprocal" tariffs has faced significant legal challenges. Opponents argue the administration is exceeding the authority granted by Congress and encroaching on Congress's constitutional power to tax and regulate commerce. Cases have argued that the president's actions are an unconstitutional overreach of executive power, though courts have been hesitant to intervene decisively.

Your Action Options

TO SUPPORT THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121 "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support the President's America First trade policies and the use of tariffs to protect American jobs."

30-Minute Deep Dive:

  • Write a Detailed Email: Contact members of the House Ways and Means Committee and the Senate Finance Committee, which have jurisdiction over trade policy.
  • Join an Organization: Groups like the Coalition for a Prosperous America advocate for protectionist trade policies to rebuild U.S. manufacturing.

TO OPPOSE THIS BILL

5-Minute Actions:

  • Call Your Rep/Senators: [Capitol Switchboard: (202) 224-3121] "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to oppose broad tariffs that raise costs for American families and to reclaim Congress's authority over trade."

30-Minute Deep Dive:

  • Write a Letter to the Editor: Submit a letter to your local newspaper explaining how tariffs could negatively impact your community or local businesses.
  • Join an Organization: Groups like Americans for Free Trade, the U.S. Chamber of Commerce, and Citizens Trade Campaign advocate for free trade and oppose the use of broad tariffs. Conservative think tanks like The Heritage Foundation also have a history of supporting free trade.