1、 itif.org The Trade Imbalance Index:Where the Trump Administration Should Take Action to Address Trade Distortions STEPHEN EZELL,TRELYSA LONG,AND ROBERT D.ATKINSON|MARCH 2025 As the Trump administration seeks to rebalance Americas trade relationships,it should focus the most attention on countries w
2、here U.S.industries face the worst trade distortions and imbalances,and where the greatest gains can be achieved for the U.S.economy.China,India,and the European Union top that list.KEY TAKEAWAYS The White House has given the Office of the U.S.Trade Representative,along with the departments of Treas
3、ury and Commerce,until April 1 to identify countries the administration should confront with corrective trade actions.It would be a mistake for the Trump administration to impose across-the-board tariffs on all nations,even if some run trade surpluses with America.The administration should focus on
4、the nations that employ the most extensive arrays of unfair trade practices,including behind-the-border restrictions that specifically target U.S.companies or exports.Based on an index composed of 11 indicators covering Americas trade balances and key barriers U.S.industries face in markets around w
5、orld,the administration should focus the greatest attention on China,India,and the European Union.While it is highly unlikely that tariffs or other pressure can convince China to reduce its trade distortions,such measures might work vis-vis U.S.relations with other nations.INFORMATION TECHNOLOGY&INN
6、OVATION FOUNDATION|MARCH 2025 PAGE 2 CONTENTS Key Takeaways.1 Introduction.3 Mercantilist Country Analysis.5 China.5 India.6 The European Union.7 Indicator Analysis.10 Trade Balance in Goods and Information Services.10 Trade Restrictions.11 Simple Mean Tariff Rate for All Products.11 Non-Tariff Trad