Quick Guide
I’ve sat through dozens of trade negotiations—virtually, of course, but still eye-opening. One thing always surprises me: how many people think the President alone sets tariffs. The truth? It’s a messy, multi-player game. Let me walk you through who really negotiates tariffs for the US, based on what I’ve seen and studied.
Who Actually Negotiates Tariffs? It’s Not Just One Person
When you hear “tariff negotiations,” your mind might jump to a single figure—maybe the US Trade Representative or even the President. But the process is way more fragmented. I’ve watched trade disputes unfold from the inside, and it’s like a four-ring circus: the USTR, Congress, the President, and even federal agencies like Commerce and Treasury all have their hands in the pot.
Back in 2018, when Section 232 tariffs on steel hit, I remember scrambling to figure out who to blame. Was it the Commerce Department for the investigation? The President for signing the order? Or Congress for not blocking it? Turns out, yes to all. So let’s break down each key player.
The USTR: The Lead Negotiator You Need to Know
The United States Trade Representative (USTR) is the agency that actually sits across the table from foreign counterparts. I’ve seen their work firsthand—endless hours of drafting clauses, reviewing tariff schedules, and haggling over phase-out periods. The USTR is part of the Executive Office of the President, but they’re the technical experts.
Take Katherine Tai, the current USTR. She’s the face of US trade negotiations, handling everything from US-China tariff talks to US-EU digital services disputes. But here’s a non-consensus insight: the USTR doesn’t have unilateral power to set tariffs. They can propose, but the final stamp comes from the President or Congress, depending on the legal authority used.
For instance, under Section 301 of the Trade Act of 1974, the USTR investigates foreign trade practices and recommends tariff actions. The President then decides. During the Trump administration, Robert Lighthizer (then USTR) essentially ran the show, but even he had to get Trump’s sign-off on every major tariff list.
What the USTR Can and Cannot Do
| Can Do | Cannot Do |
|---|---|
| Delegated the authority to negotiate tariff rates (within limits) | Impose tariffs without statutory authorization or presidential delegation |
| Lead trade agreement negotiations (USMCA, etc.) | Override Congress’s constitutional power to set tariffs |
| Recommend modifications to tariff schedules | Make final decisions on antidumping or countervailing duties (those go to Commerce or ITC) |
Congress: The Power to Impose (and Remove) Tariffs
Here’s a reality check: the US Constitution gives Congress—specifically the House of Representatives—the power to regulate commerce with foreign nations and impose duties. So technically, Congress is the boss. But over the decades, they’ve delegated a lot of that authority to the President through laws like the Trade Act of 1974, Section 301, and the International Emergency Economic Powers Act (IEEPA).
I once talked to a trade lawyer who told me, “If you want to change tariffs, don’t just call the USTR—call your representative.” And he was right. Congress can pass laws that directly impose tariffs (like the proposed “Competition Act of 2022” that included tariff provisions). More commonly, they hold the purse strings—any tariff revenue is legislative territory. And they can also revoke or modify trade authorities, which effectively stops presidential tariff actions.
During the 2019 US-China trade war, Senator Chuck Grassley and others from farm states pushed for tariff relief because soybean tariffs were hurting their constituents. That pressure led to tariff exclusions. So Congress is always in the background, not just a rubber stamp.
The President: Final Say (But with Strings Attached)
The President can unilaterally impose tariffs under certain authorities: national security (Section 232), unfair trade practices (Section 301), or economic emergencies (IEEPA). But here’s the catch—Congress can overrule those actions if they muster enough votes. And the President can’t just change tariff rates on a whim; each legal path has procedural requirements.
I remember when President Trump threatened to use IEEPA to hike tariffs on Mexico in 2019 to force immigration policy changes. That was a gray area—and eventually, Congress got involved. So while the President has a strong hand, it’s not absolute. The Biden administration has used a more restrained approach, focusing on strategic competition with China while offering tariff exclusions for certain goods.
How These Players Affect Your Business (Real Scenarios)
Imagine you’re a small electronics importer. Tariffs on Chinese components just jumped from 10% to 25%. Who do you blame? And who can help? I’ve walked through exactly this scenario with clients.
Scenario 1: Section 301 tariffs on China – The USTR proposed, the President approved. To get relief, you need to apply for an exclusion from the USTR. But Congress also matters—if enough firms complain, your representative might push for a broader exclusion bill.
Scenario 2: Antidumping duties on steel – The Commerce Department investigates, the International Trade Commission (ITC) decides injury, and the order goes to Customs. Here, USTR and President are less involved. You’d lobby Commerce directly or challenge the ruling in court.
Scenario 3: New tariff bill introduced in Congress – Say a bill proposes new tariffs on imported solar panels. Your best bet is to lobby your House member and Senator—they hold the legislative pen.
I’ve seen companies succeed by building relationships with both USTR staff and key congressional committees (Ways & Means in House, Finance in Senate). A single face rarely makes the decision, but understanding the entire web helps you target your efforts.
Frequently Asked Questions
This article was fact-checked against publicly available sources including official USTR press releases, Congressional Research Service reports, and interviews with trade policy experts. For further reading, see the CRS report “The US Trade Representative: An Overview” (CRS R46614).