The United States enjoys a hidden $282 billion trade surplus that is now under threat

(SeaPRwire) –   Last December, U.S. Trade Representative Jamieson Greer designated 2025 as the “Year of the Tariff.” By extending his leadership, 2026 could become the “Year of Digital Trade,” representing a vital investment in the nation’s economic and national security.

Digital trade manifests when Caterpillar offers cloud-based diagnostics to Australian miners, or when American farmers utilize John Deere’s AI platforms to export grain to Japan. It also includes cross-border services via Zoom, such as Coursera’s educational reach in India, Cleveland Clinic’s remote cardiac care in the Middle East, or American Woodmark’s global cabinet sales.

This sector enables U.S. businesses to access the 96 percent of global consumers living abroad, resulting in a $282 billion trade surplus in digitally delivered services. Surprisingly, its primary benefits are felt outside of tech—in fields like agriculture, manufacturing, and healthcare. It also empowers small businesses to compete globally by simplifying payments and customs. Digital trade is a clear solution for improving affordability and creating middle-class jobs.

Furthermore, digital trade bolsters economic power, supporting domestic R&D in areas like advanced semiconductors and synthetic biology. U.S. government backing also protects American firms from being forced to surrender intellectual property. Additionally, the flow of data across borders helps authorities identify and stop cyberattacks, terrorist financing, and supply chain issues.

While the U.S. historically championed digital trade, the Biden Administration shifted course in October 2023 by withdrawing WTO support for three key principles: free data flows, bans on data localization, and source code protections. This move inadvertently encouraged other nations to implement trade restrictions.

To regain U.S. dominance, the Trump Administration and Congress should pursue several urgent, bipartisan initiatives:

First, the U.S. must reclaim its leadership role. The Administration should officially return to its traditional support for digital trade protections, signaling a commitment to establishing global rules that benefit American workers.

Second, bipartisan legislative action is required. Leaders like Representatives Suzan DelBene and Darin LaHood, along with Senators Todd Young, Chris Coons, Jerry Moran, and Michael Bennet, have advocated for the Digital Trade Promotion Act. Congress needs to pass this bill to give the President negotiating power for high-standard agreements.

Third, the U.S. should seek “gold standard” trade deals. Building on previous successes with Japan, Canada, and Mexico, the next administration should prioritize new agreements with partners like South Korea, the United Kingdom, and Australia.

Finally, the U.S. must challenge unfair trade practices. This involves using trade laws to oppose digital services taxes in countries like India and France, and making the WTO’s ban on electronic transmission duties permanent to ensure export certainty.

Digital trade is fundamental to U.S. competitiveness and security. The moment to re-establish American leadership in the global digital agenda has arrived.

The views expressed in this commentary belong solely to the authors and do not necessarily represent the organization’s official stance.