Katherine Tai

Trade policy in the second Trump administration is expected to continue being highly active and unpredictable. This session will examine the policy rationales behind the various proposed tariffs, fees, investment and technology restrictions, and transactional deals yet to be fully defined, as well as their implications for domestic and global markets. 

The North American trade framework has evolved significantly, from NAFTA to the U.S.-Mexico-Canada Agreement (USMCA). The USMCA’s ratification in 2020 was a landmark moment in U.S. trade policy, made possible through negotiations between Congressional Democrats and the first Trump administration—negotiations in which Katherine Tai played a key role. As economic and geopolitical factors continue to change—especially in light of supply chain challenges, trade policy shifts, and upcoming reviews—what are the prospects for North American trade relations? This discussion will assess key policy considerations as the 2026 review of USMCA approaches.

Tariffs have long been a subject of debate—viewed as either a safeguard for economic security or a driver of inflation. Beyond their economic impact, they have also become a cultural symbol, representing domestic industry and national resilience to some, while others see them as a sign of protectionism or even aggression. Their implementation, however, is shaped by a policy framework where both the executive and legislative branches play a role. While the White House drives trade negotiations and enforcement, Congress holds constitutional authority over foreign commerce, setting the limits of tariff policy through legislation and oversight. Understanding this balance of power is crucial to assessing how tariffs are used to remedy unfair trade practices, address national security concerns, and shape industrial supply chains. This discussion will explore the economic, legal, and political dimensions of tariffs and broader trade policymaking in the United States.