Adding another trainer to your friend list will be as simple as swapping a trainer code with someone, sending them a friend request and waiting for them to accept or reject it.
Trading increases your Friend Level, though you can also send them Gifts - a new item you'll receive when spinning a Pokéstop explicitly for giving out to pals. So here's how it works: You will only be able to trade with people that are physically near you, and both players need to be at least level 10 in game. So, a Level 10 player can make a trade with a Level 35 player, but the Pokemon they receive will be scaled down to reflect the Level 10 player's current abilities and level cap.
Conducting trades will apparently require the use of Stardust, with the amount varying depending on the type of Pokemon being traded. Each friendship start out as "Good Friends" and increases as you complete in-game tasks together. It takes but one day of doing friendship activities together to become Good Friends. So if you want to give a particularly strong Pokemon to a friend, it may not be so strong once they receive it. Not only do Special Trades cost more Stardust to complete, players will need to be at a certain friendship level with their trading partner in order to complete it. Shiny and legendary Pokemon have an added caveat of being labelled as Special Trades; which can only happen once per day. My mom has been playing Pokemon Go since it launched with me only jumping in previous year. Ultra Friends get a greater discount on trading, a bigger attack boost in battles, and two extra Premiere Balls at the end of a successful Raid.
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If you're trading for a beast you don't already have, that will fall under the category of a "special trade". The traded Pokemon's HP and CP is more likely to be closer to its initial value the greater your friendship level, but there's still no guarantee that what you see is what you'll get. This is arguably the biggest way Pokemon Go's version of trading differs from trading in the main series - where trading Pokemon in a main series game is free, trading in Pokemon Go requires you to spend Stardust. Pokemon Go emphasizes players getting up and going outside to explore and find new Pokemon. Gifts have the possibility of containing an Egg in addition to coming with a cool Postcard that shows where the Gift was obtained.
When trading is launched at some point in the next few weeks, you'll have to be friends with another trainer to trade Pokemon with them.