International trade policy is a policy related to trading across national boundaries. A government establishes an international trade policy that encompasses actions they will take to protect the best interests of their citizens and companies.
Some of the major actions governments take are free trade policies or tariffs. Free trade policies encourage trade between certain countries. A good example of this is NAFTA, the North American Free Trade Agreement, which allowed free trade throughout the United States, Mexico, and Canada. Tariffs are sometimes imposed on other countries as possible punishment for negative actions or to prevent the industry in those countries from damaging similar domestic industries; a tariff ensures the nation gets money from that trade and also discourages as much trade in those certain areas.