President Donald Trump has introduced new tariffs on imports from pretty much every country – including close allies like the U.K. The move has sparked fresh debate over what kind of trade policy best serves American interests. 

But tariffs are just one part of the story of how the global flow of goods and services is regulated. 

Even if every tariff disappeared tomorrow, trade would still not be truly “free.” That is because both the United States and its trading partners enforce a wide range of non-tariff barriers (NTBs) – rules and regulations that affect what gets imported, exported, and who benefits. 

These measures are often put in place to support legitimate policy goals: safeguarding national security, protecting public health, and maintaining high standards for goods and services. But they also shape the flow of trade and can tilt the playing field in favor of domestic producers. For example: 

  1. Buy American Requirements

The Buy American Act of 1933 requires federal agencies to give preference to American-made goods when making purchases. The goal is to support domestic manufacturing and preserve U.S. jobs – ideas that are broadly popular with voters. 

But this preference limits access for foreign suppliers which can reduce competition for government contracts. A recent analysis by the Center for Economic Policy and Research found that each job created by these provisions costs taxpayers between $111,500 and $137,700. Proposed expansions of these rules could raise the costs significantly higher. 

  1. Agricultural Import Restrictions

The U.S. sets strict sanitary and phytosanitary (SPS) standards for agricultural imports to prevent pests, diseases, or contaminants from entering the food supply. These measures are designed to protect public health and the environment. 

At the same time, limiting agricultural imports can reduce supply and variety – especially in off-season months – and may contribute to higher prices for families here in the U.S. 

  1. Export Controls on Technology

To protect national security and prevent the spread of sensitive military-related technologies, the U.S. imposes export controls on certain goods, software, and know-how. 

These restrictions serve important defense goals. But they can also limit the global reach of U.S. firms in critical industries. One study estimates that export controls reduce the market value of the average affected tech company by $857 million, with total losses across the sector nearing $130 billion. 

  1. The Jones Act

The Jones Act, passed in 1920, requires that goods transported between U.S. ports be carried on ships that are U.S.-built, -owned, and -crewed. The law is intended to maintain a strong domestic shipping industry and ensure a ready merchant marine for national emergencies. 

Critics argue it increases shipping costs by excluding foreign carriers. A 2020 report estimated that the Jones Act raises the cost of shipping to Puerto Rico by nearly $569 million each year. 

  1. Technical Barriers to Trade (TBT)

The U.S. sets detailed technical and safety standards for products sold in its market. These include rules on labeling, testing, and environmental impact. 

While these standards protect consumers and reflect domestic priorities, they can also pose challenges for foreign producers, who may need to redesign products to comply. In the agricultural industry, the cost of meeting these requirements can be equivalent to a tariff of up to 102 percent. 

The Bottom Line 

Even without tariffs, trade is shaped by a web of rules and requirements. These non-tariff barriers serve a range of purposes – but they also come with costs and consequences for all of us. Policymakers need to be clear-eyed about the costs and benefits and ensure the balance ultimately serves the public interest.