When Americans think about international trade, they often focus on the federal government negotiating trade agreements or imposing tariffs. While this is accurate, individual states also play an important role in shaping the nation’s trade landscape. The U.S. system of federalism divides power between state and national governments, but when it comes to international trade, the balance is heavily weighted toward Washington.
The U.S. Constitution grants Congress the authority to “regulate Commerce with foreign Nations” through the Foreign Commerce Clause (Article I, Section 8). This constitutional authority means the federal government establishes trade policy, approves trade agreements, sets tariff laws, and regulates imports and exports. Additionally, the President negotiates trade agreements and oversees foreign policy, often exercising trade powers delegated by Congress. Because international trade affects national diplomacy, security, and economic stability, the United States presents a unified trade policy rather than allowing each state to negotiate independently.1
Where States Have a Voice
Although states cannot negotiate treaties, impose tariffs, or establish independent trade agreements with foreign governments, they still influence America’s trade dynamics. State governments promote exports, recruit foreign investment, and advocate for industries that are essential to their economies. Many maintain international trade offices (like the NDTO), organize trade missions, and work directly with businesses to expand access to overseas markets. Governors and state economic development agencies also lobby Congress and federal officials when proposed trade policies could significantly affect their state’s economy.
States also shape trade through investments in infrastructure and workforce development. Modern highways, railroads, airports, and business incentive programs help companies move goods efficiently and compete internationally. While these efforts do not change federal trade policy, they strengthen each state’s ability to benefit from global commerce.
North Dakota’s Stake
North Dakota demonstrates how state interests intersect with national trade policy. Agriculture and energy are the major drivers of our state’s economy, with products such as wheat, soybeans, corn, dry edible beans, beef, and crude oil reaching international markets. Because these industries rely on exports, federal decisions regarding tariffs, trade agreements, and export restrictions can directly affect producers across the state.
North Dakota leadership, agricultural organizations, business groups, and the NDTO actively advocate for policies that preserve export markets and improve access to global consumers. Our input helps ensure that the needs of North Dakota producers are considered as federal officials develop trade policy.
Shared Responsibility
Despite the important role states play, the federal government retains final authority over international trade. The Constitution limits states from engaging independently in foreign affairs or imposing duties on imports and exports without congressional approval. These restrictions ensure that the United States presents one consistent trade policy to its international partners rather than fifty separate approaches.2
International trade in the United States is ultimately a partnership with clearly defined responsibilities. The federal government negotiates agreements and establishes the rules, while states focus on supporting businesses, strengthening infrastructure, and advocating for their economic interests. North Dakota and the NDTO illustrate how states can meaningfully influence the national conversation even without possessing direct authority over international trade negotiations.
1 https://www.law.cornell.edu/wex/international_trade; https://www.law.cornell.edu/wex/commerce_clause.
2 https://crsreports.congress.gov/product/pdf/LSB/LSB10808