Tariffs in the first Trump administration
{{Short description|none}}
{{For|the tariffs imposed in 2025|Tariffs in the second Trump administration}}
{{Broader|China–United States trade war}}
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{{Update|part=details on how the United States–Mexico–Canada Agreement impact tariffs and on the China-US trade war |date=October 2018}}
{{Use American English|date=February 2018}}
{{Use mdy dates|date=November 2022}}
{{Donald Trump series|expanded=Policies}}
File:United States Trade Deficit.svg.]]
Tariffs during the first presidency of Donald Trump involved protectionist trade initiatives against other countries, most notably China. It principally involved tariffs on foreign imports imposed by Donald Trump, the 45th president of the United States. Since long before he became president in 2017, Trump had promoted tariffs on imports to retaliate against countries he believes are "ripping-off" the United States. Trump has insisted that foreign nations pay the tariffs he imposes; however, several economists say the reality is that American importers pay them.
In January 2018, Trump imposed tariffs on solar panels and washing machines of 30–50%.{{cite web|first=Richard|last=Gonzales|url=https://www.npr.org/sections/thetwo-way/2018/01/22/579848409/trump-slaps-tariffs-on-imported-solar-panels-and-washing-machines|title=Trump Slaps Tariffs On Imported Solar Panels and Washing Machines|publisher=NPR|date=January 22, 2018|access-date=March 14, 2018|archive-date=October 21, 2019|archive-url=https://web.archive.org/web/20191021042215/https://www.npr.org/sections/thetwo-way/2018/01/22/579848409/trump-slaps-tariffs-on-imported-solar-panels-and-washing-machines|url-status=live}} In March 2018, he imposed tariffs on steel (25%) and aluminum (10%) from most countries,{{cite web|first=Scott|last=Horsley|url=https://www.npr.org/2018/03/08/591744195/trump-expected-to-formally-order-tariffs-on-steel-aluminum-imports|title=Trump Formally Orders Tariffs on Steel, Aluminum Imports|publisher=NPR|date=March 8, 2018|access-date=March 14, 2018|archive-date=December 31, 2019|archive-url=https://web.archive.org/web/20191231034502/https://www.npr.org/2018/03/08/591744195/trump-expected-to-formally-order-tariffs-on-steel-aluminum-imports|url-status=live}}{{cite news|first=Heather|last=Long|url=https://www.washingtonpost.com/news/wonk/wp/2018/05/31/trump-has-officially-put-more-tariffs-on-u-s-allies-than-on-china/|title=Trump has officially put more tariffs on U.S. allies than on China|newspaper=The Washington Post|date=May 31, 2018|access-date=June 2, 2018|archive-date=December 6, 2019|archive-url=https://web.archive.org/web/20191206014401/https://www.washingtonpost.com/news/wonk/wp/2018/05/31/trump-has-officially-put-more-tariffs-on-u-s-allies-than-on-china/|url-status=live}}The President also authorized the Department of Commerce to provide relief, or exclusion, from these tariffs for U.S. steel and aluminum importers in certain circumstances, such as when the product is not available domestically or based on national security considerations. See [https://www.gao.gov/products/gao-20-517 "Steel and Aluminum Tariffs: Commerce Should Improve Its Exclusion Request Process and Economic Impact Reviews".] and [https://www.gao.gov/products/gao-22-104564 "Steel and Aluminum Tariffs:Commerce Should Update Public Guidance to Reflect Changes in the Exclusion Process".] U.S. Government Accountability Office. Retrieved January 12, 2022. which, according to Morgan Stanley, covered an estimated 4.1% of U.S. imports.{{Cite news|first=David|last=Chance|url=https://www.reuters.com/article/us-usa-trade-trump-rhetoric-analysis/trumps-trade-tariffs-long-on-rhetoric-short-on-impact-idUSKBN1GH37N|title=Trump's trade tariffs: Long on rhetoric, short on impact?|date=March 5, 2018|work=Reuters|access-date=March 9, 2018|archive-date=September 23, 2019|archive-url=https://web.archive.org/web/20190923051627/https://www.reuters.com/article/us-usa-trade-trump-rhetoric-analysis/trumps-trade-tariffs-long-on-rhetoric-short-on-impact-idUSKBN1GH37N|url-status=live}} In June 2018, this was extended to the European Union, Canada, and Mexico. The Trump administration separately set and escalated tariffs on goods imported from China, leading to a trade war.{{Cite news|url=https://www.washingtonpost.com/world/china-fires-back-at-us-tariffs-vows-to-defend-its-core-interests/2018/07/06/f42fc812-8091-11e8-a63f-7b5d2aba7ac5_story.html|title=As Trump's trade war starts, China retaliates with comparable tariffs of its own|newspaper=The Washington Post|language=en|access-date=2018-07-06|archive-date=December 5, 2019|archive-url=https://web.archive.org/web/20191205192806/https://www.washingtonpost.com/world/china-fires-back-at-us-tariffs-vows-to-defend-its-core-interests/2018/07/06/f42fc812-8091-11e8-a63f-7b5d2aba7ac5_story.html|url-status=live}}
Trading partners implemented retaliatory tariffs on U.S. goods.{{cite news |url=https://www.bbc.com/news/business-44324565 |title=US tariffs a dangerous game, says EU |work=BBC News |date=June 1, 2018 |access-date=June 2, 2018 |archive-date=December 31, 2019 |archive-url=https://web.archive.org/web/20191231032144/https://www.bbc.com/news/business-44324565 |url-status=live }} In June 2018, India planned to recoup trade penalties of $241 million on $1.2 billion worth of Indian steel and aluminum,{{cite news|url=https://money.cnn.com/2018/06/17/news/economy/india-us-tariffs-steel-aluminum-wto/index.html|title=India moves ahead with tariffs on US goods|publisher=CNN|date=June 17, 2018|access-date=August 3, 2020|archive-date=December 8, 2019|archive-url=https://web.archive.org/web/20191208075026/https://money.cnn.com/2018/06/17/news/economy/india-us-tariffs-steel-aluminum-wto/index.html|url-status=live}} but attempted talks delayed these until June 2019 when India imposed retaliatory tariffs on $240 million worth of U.S. goods.{{cite news|work=USA Today|url=https://www.usatoday.com/story/money/2019/06/16/trade-war-india-hits-u-s-more-tariffs/1471140001/|title=India imposing increased, retaliatory tariffs on US exports including apples, almonds|date=June 16, 2019|access-date=June 17, 2019|archive-date=December 28, 2019|archive-url=https://web.archive.org/web/20191228055855/https://www.usatoday.com/story/money/2019/06/16/trade-war-india-hits-u-s-more-tariffs/1471140001/|url-status=live}} Canada imposed matching retaliatory tariffs on July 1, 2018.{{ Cite web | author = Kate Rooney | url = https://www.cnbc.com/2018/06/29/canada-makes-retaliatory-tariffs-official-we-will-not-back-down.html | title = Canada makes retaliatory tariffs official: 'We will not back down' | archive-url = https://web.archive.org/web/20191216192343/https://www.cnbc.com/2018/06/29/canada-makes-retaliatory-tariffs-official-we-will-not-back-down.html | archive-date = December 16, 2019 | website = CNBC | date = June 29, 2018 }}Daniel Wolfe, [https://qz.com/1318475/the-full-list-of-229-us-products-targeted-by-canadas-retaliatory-tariffs/ The full list of 229 US products targeted by Canada's retaliatory tariffs] {{Webarchive|url=https://web.archive.org/web/20191204022858/https://qz.com/1318475/the-full-list-of-229-us-products-targeted-by-canadas-retaliatory-tariffs/ |date=December 4, 2019 }}, Quartz (June 29, 2018). China implemented retaliatory tariffs equivalent to the $34 billion tariff imposed on it by the U.S.{{Cite news|url=https://www.reuters.com/article/us-usa-trade-china-ministry/trump-sets-tariffs-on-50-billion-in-chinese-goods-beijing-strikes-back-idUSKBN1JB0KC|title=Trump sets tariffs on $50 billion in Chinese goods; Beijing strikes{{nbsp}}...|last=Lawder|first=David|work=U.S.|access-date=2018-09-16|language=en-US|archive-date=October 19, 2019|archive-url=https://web.archive.org/web/20191019033349/https://www.reuters.com/article/us-usa-trade-china-ministry/trump-sets-tariffs-on-50-billion-in-chinese-goods-beijing-strikes-back-idUSKBN1JB0KC|url-status=live}} In July 2018, the Trump administration announced it would use a Great Depression-era program, the Commodity Credit Corporation (CCC), to pay farmers up to $12 billion, increasing the transfers to farmers to $28 billion in May 2019.{{Cite news|url = https://www.nytimes.com/2019/05/23/us/politics/farm-aid-package.html|title = Trump Gives Farmers $16 Billion in Aid Amid Prolonged China Trade War|newspaper = The New York Times|date = May 23, 2019|last1 = Swanson|first1 = Ana|access-date = May 23, 2019|archive-date = May 23, 2019|archive-url = https://web.archive.org/web/20190523181356/https://www.nytimes.com/2019/05/23/us/politics/farm-aid-package.html|url-status = live}} The USDA estimated that aid payments constituted more than one-third of total farm income in 2019 and 2020.{{Cite news |url=https://www.wsj.com/articles/trade-war-with-china-took-toll-on-u-s-but-not-big-one-11578832381 |title=Trade War with China Took Toll on U.S., but Not Big One |newspaper=The Wall Street Journal |date=January 12, 2020 |access-date=January 16, 2020 |archive-date=January 16, 2020 |archive-url=https://web.archive.org/web/20200116172038/https://www.wsj.com/articles/trade-war-with-china-took-toll-on-u-s-but-not-big-one-11578832381 |url-status=live }}{{Cite web|last=Kirwan|first=Hope|date=September 23, 2020|title=More Than 40 Percent Of 2020 Farm Income Projected To Come From Federal Payments|url=https://www.wpr.org/more-40-percent-2020-farm-income-projected-come-federal-payments|access-date=2020-12-11|website=Wisconsin Public Radio|language=en|archive-date=January 5, 2021|archive-url=https://web.archive.org/web/20210105033537/https://www.wpr.org/more-40-percent-2020-farm-income-projected-come-federal-payments|url-status=live}}
Tariff negotiations in North America were relatively more successful, with the U.S. lifting the steel and aluminum tariffs on Canada and Mexico on May 20, 2019, joining Australia and Argentina in being the only nations exempted from the regulations.{{Cite news|url=https://www.sbs.com.au/news/australia-exempted-from-us-tariffs-on-steel-and-aluminium|title=Australia exempted from US tariffs on steel and aluminium|work=SBS News|access-date=2018-09-16|language=en-GB|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200935/https://www.sbs.com.au/news/australia-exempted-from-us-tariffs-on-steel-and-aluminium|url-status=live}}{{cite news|publisher=CNBC|url=https://www.cnbc.com/2019/05/17/us-to-announce-deal-to-lift-steel-and-aluminum-tariffs-on-canada-and-mexico-as-soon-as-today-sources.html|title=US reaches deal to lift steel and aluminum tariffs on Canada and Mexico|date=May 17, 2019|access-date=May 17, 2019|archive-date=May 22, 2019|archive-url=https://web.archive.org/web/20190522022607/https://www.cnbc.com/2019/05/17/us-to-announce-deal-to-lift-steel-and-aluminum-tariffs-on-canada-and-mexico-as-soon-as-today-sources.html|url-status=live}} However, on May 30, Trump unilaterally announced his intention to impose a five percent tariff on all imports from Mexico beginning on June 10, with tariffs increasing to 10% on July{{nbsp}}1, and by another 5% each month for three months, "until such time as illegal migrants coming through Mexico, and into our Country, STOP", adding illegal immigration as a condition for U.S.-Mexico tariff negotiations. The move was seen as threatening the ratification of the United States–Mexico–Canada Agreement (USMCA), the North American trade deal set to replace the North American Free Trade Agreement (NAFTA). The tariffs were averted on June 7 after negotiations.{{cite news |last=Ayesh |first=Rashaan |date=June 7, 2019 |title=Trump claims he's reached deal with Mexico |url=https://www.axios.com/trump-claims-reached-deal-mexico-fefc58e7-61c4-40a8-9e4e-1bf53601df0a.html |url-status=live |archive-url=https://web.archive.org/web/20190923082757/https://www.axios.com/trump-claims-reached-deal-mexico-fefc58e7-61c4-40a8-9e4e-1bf53601df0a.html |archive-date=September 23, 2019 |access-date=June 8, 2019 |work=Axios}}
A May 2019 analysis conducted by CNBC found Trump's tariffs are equivalent to one of the largest tax increases in the U.S. in decades.{{Cite web|url=https://www.cnbc.com/2019/05/16/trumps-tariffs-are-equivalent-to-one-of-the-largest-tax-increases-in-decades.html|title=Trump's tariffs are equivalent to one of the largest tax increases in decades|first=Steve|last=Liesman|date=May 16, 2019|publisher=CNBC|access-date=May 17, 2019|archive-date=May 17, 2019|archive-url=https://web.archive.org/web/20190517233849/https://www.cnbc.com/2019/05/16/trumps-tariffs-are-equivalent-to-one-of-the-largest-tax-increases-in-decades.html|url-status=live}}{{Cite news|url=https://www.marketwatch.com/story/trumps-escalating-trade-war-with-china-could-wipe-out-benefits-from-his-tax-reform-2019-05-13|title=Trump's escalating trade war with China could wipe out benefits from his tax reform|first=Andrew|last=Keshner|website=MarketWatch|access-date=May 17, 2019|archive-date=May 17, 2019|archive-url=https://web.archive.org/web/20190517180231/https://www.marketwatch.com/story/trumps-escalating-trade-war-with-china-could-wipe-out-benefits-from-his-tax-reform-2019-05-13|url-status=live}}{{Cite web|url=https://www.taxpolicycenter.org/taxvox/many-households-trumps-tariffs-could-wipe-out-benefits-tcja|title=For Many Households, Trump's Tariffs Could Wipe Out The Benefits of the TCJA|date=May 14, 2019|website=Tax Policy Center|access-date=May 17, 2019|archive-date=May 17, 2019|archive-url=https://web.archive.org/web/20190517180241/https://www.taxpolicycenter.org/taxvox/many-households-trumps-tariffs-could-wipe-out-benefits-tcja|url-status=live}} Studies have found that Trump's tariffs reduced real income in the United States, as well as adversely affecting U.S. GDP. Some studies also concluded that the tariffs adversely affected Republican candidates in elections.{{Cite journal|last1=Chyzh|first1=Olga V.|last2=Urbatsch|first2=Robert|date=April 20, 2020|title=Bean Counters: The Effect of Soy Tariffs on Change in Republican Vote Share between the 2016 and 2018 Elections|url=https://www.journals.uchicago.edu/doi/10.1086/709434|journal=The Journal of Politics|volume=83|pages=415–419|doi=10.1086/709434|s2cid=148566009|issn=0022-3816|access-date=October 7, 2020|archive-date=October 29, 2020|archive-url=https://web.archive.org/web/20201029215848/https://www.journals.uchicago.edu/doi/10.1086/709434|url-status=live}} A study found that political donations had a notable impact on the likelihood of tariff exemptions.{{Cite web |last=Fotak |first=Veljko |last2=Lee |first2=Hye Seung (Grace) |last3=Megginson |first3=William L. |last4=Salas |first4=Jesus M. |date=July 30, 2024 |title=The Political Economy of Tariff Exemption Grants – JFQA |url=https://jfqa.org/2024/07/30/the-political-economy-of-tariff-exemption-grants/ |access-date= |website=Journal of Financial and Quantitative Analysis}}{{Cite news |last=Jones |first=Callum |date=2025-01-06 |title=Firms that donated to Republican party avoided tariffs in Trump first term – study |url=https://www.theguardian.com/us-news/2025/jan/06/trump-tariffs-republican-donations |access-date= |work=The Guardian |language=en-GB |issn=0261-3077}}{{Cite news |last=Swanson |first=Ana |date=2024-11-23 |title=Trump’s Trade Agenda Could Benefit Friends and Punish Rivals |url=https://www.nytimes.com/2024/11/23/us/politics/trump-tariff-exemptions.html |archive-url=https://archive.today/20250305101341/https://www.nytimes.com/2024/11/23/us/politics/trump-tariff-exemptions.html |archive-date=5 March 2025 |access-date= |work=The New York Times |language=en-US |issn=0362-4331}}
President Trump's successor, President Biden, kept most of the tariffs in place, dropping tariffs on European steel while further expanding tariffs on goods such as EVs and semiconductors from China, resulting in more tax revenue being collected from tariffs under Biden than under the first Trump administration.[https://taxfoundation.org/blog/biden-trump-tariffs/ Americans Are Still Paying for the Trump-Biden Tariffs] - Tax Foundation, 16 April 2024[https://edition.cnn.com/2024/09/13/politics/china-tariffs-biden-trump/index.html Biden finalizes increases to some of Trump’s China tariffs] - CNN, 13 September 2024[https://www.wnycstudios.org/podcasts/otm/articles/the-story-behind-bidens-new-tariffs?tab=transcript The Story Behind Biden's New Tariffs] - NPR On the Media - 15 May 2024[https://www.politico.com/news/2024/05/15/biden-tariff-reaction-trump-00158043 DC slammed Trump’s tariffs. Biden’s decision to keep them draws a very different reaction] - Politico, 15 May 2024
Background
{{See also|History of tariffs in the United States#2000 to present: Deindustrialization and wage deflation|Protectionism in the United States#1980s to present}}
File:Average Tariff Rates in USA (1821-2016).png
File:U.S. Trade Balance (1895–2015) and Trade Policies.png
The Republican Party was strongly pro-tariff from the days of Abraham Lincoln until the Cold War. Republicans passed record high tariffs in the 1920s and early 1930s, which were widely blamed for worsening the Great Depresssion. Donald Trump has argued that the GOP betrayed its roots by becoming in favor of free trade and has cited William McKinley in particular as an influence on his anti-free trade views.{{Cite magazine |last=Schulman |first=Bruce J. |date=2024-10-24 |title=Tariffs Don't Have to Make Economic Sense to Appeal to Trump Voters |url=https://time.com/7095746/trump-tariffs-politics-rhetoric/ |access-date=2024-11-01 |magazine=TIME |language=en}}{{Cite web |last=Guzik |first=Erik |date=2024-10-31 |title=Tariffs are back in the spotlight, but skepticism of free trade has deep roots in American history |url=https://theconversation.com/tariffs-are-back-in-the-spotlight-but-skepticism-of-free-trade-has-deep-roots-in-american-history-241311 |access-date=2024-11-01 |website=The Conversation |language=en-US}} Trump adopted his current views on trade issues in the 1980s, saying Japan and other nations were taking advantage of the United States.{{cite news | last1=Schlesinger | first1=Jacob M. | title=Trump Forged His Ideas on Trade in the 1980s—And Never Deviated | url=https://www.wsj.com/articles/trump-forged-his-ideas-on-trade-in-the-1980sand-never-deviated-1542304508 | date=November 15, 2018 | newspaper=The Wall Street Journal | access-date=November 15, 2018 | archive-date=November 15, 2018 | archive-url=https://web.archive.org/web/20181115182849/https://www.wsj.com/articles/trump-forged-his-ideas-on-trade-in-the-1980sand-never-deviated-1542304508 | url-status=live }}{{cite news| title=Trump's Love for Tariffs Began in Japan's '80s Boom | newspaper=The New York Times| date=May 15, 2019| url=https://www.nytimes.com/2019/05/15/us/politics/china-trade-donald-trump.html| last1=Tankersley| first1=Jim| last2=Landler| first2=Mark}} During the 2016 presidential campaign, Trump repeatedly favored policy proposals that renegotiate trade agreements for the United States. His chief trade advisor during the campaign was Peter Navarro, who favored the use of tariffs, especially against China.{{cite web |date=December 21, 2016 |title=President-Elect Trump Appoints Dr. Peter Navarro to Head the White House National Trade Council |url=https://greatagain.gov/navarro-national-trade-council-c2d90c10eacb#.7ri8g5sa3 |url-status=dead |archive-url=https://web.archive.org/web/20170118200515/https://greatagain.gov/navarro-national-trade-council-c2d90c10eacb |archive-date=January 18, 2017 |access-date=January 19, 2017 |website=greatagain.gov |quote=President-elect Donald J. Trump today announced the formation of the White House National Trade Council (NTC) and his selection of Dr. Peter Navarro to serve as Assistant to the President and Director of Trade and Industrial Policy.}} During a meeting with the New York Times Editorial Board in January 2016, Trump said he would tax Chinese imports into the United States by 45%.{{Cite news|author=Maggie Haberman|url=https://www.nytimes.com/politics/first-draft/2016/01/07/donald-trump-says-he-favors-big-tariffs-on-chinese-exports/|title=Donald Trump Says He Favors Big Tariffs on Chinese Exports|work=The New York Times|date=January 7, 2016 |access-date=March 20, 2018|archive-date=July 21, 2016|archive-url=https://web.archive.org/web/20160721091226/http://www.nytimes.com/politics/first-draft/2016/01/07/donald-trump-says-he-favors-big-tariffs-on-chinese-exports/|url-status=live}} Trump frequently criticized the North American Free Trade Agreement, calling it "the worst trade deal the U.S. has ever signed".{{Cite news|url=http://fortune.com/2016/09/27/presidential-debate-nafta-agreement/|title=Donald Trump Says NAFTA Was the Worst Trade Deal the U.S. Ever Signed|work=Fortune|access-date=March 20, 2018|archive-date=October 31, 2019|archive-url=https://web.archive.org/web/20191031124246/https://fortune.com/2016/09/27/presidential-debate-nafta-agreement/|url-status=live}} He also called Trans-Pacific Partnership "the death blow for American manufacturing" and said it would "put the interests of foreign countries above our own".{{Cite magazine|url=https://time.com/4386335/donald-trump-trade-speech-transcript/|title=Read Donald Trump's Speech on Trade|magazine=Time|language=en|access-date=March 21, 2018|archive-date=November 27, 2019|archive-url=https://web.archive.org/web/20191127083656/https://time.com/4386335/donald-trump-trade-speech-transcript/|url-status=live}}
=Policy=
On November 21, 2016, in a video message, Trump introduced an economic strategy of "putting America first", saying he would negotiate "fair, bilateral trade deals that bring jobs and industry back on to American shores". On January 23, 2017, three days after becoming president, Trump withdrew the United States from the politically divisive Trans-Pacific Partnership believing the agreement would "undermine" the U.S. economy and sovereignty.{{Cite news|url=http://www.washingtontimes.com/news/2016/jun/28/donald-trump-vows-to-cancel-trans-pacific-partners/|title=Donald Trump vows to cancel Trans-Pacific Partnership as president, puts NAFTA on notice|work=The Washington Times|access-date=November 15, 2016|archive-date=November 8, 2020|archive-url=https://web.archive.org/web/20201108130512/https://www.washingtontimes.com/news/2016/jun/28/donald-trump-vows-to-cancel-trans-pacific-partners/|url-status=live}}{{cite web|title=TPP's Death Won't Help the American Middle Class|url=https://www.theatlantic.com/business/archive/2016/11/tpps-death-wont-help-the-american-middle-class/507683/|website=The Atlantic|access-date=January 22, 2017|date=November 15, 2016|archive-date=September 14, 2019|archive-url=https://web.archive.org/web/20190914231540/https://www.theatlantic.com/business/archive/2016/11/tpps-death-wont-help-the-american-middle-class/507683/|url-status=live}}{{Cite web|url=https://trumpwhitehouse.archives.gov/the-press-office/2017/01/23/presidential-memorandum-regarding-withdrawal-united-states-trans-pacific|title=Presidential Memorandum Regarding Withdrawal of the United States from the Trans-Pacific Partnership Negotiations and Agreement|date=January 23, 2017|via=National Archives|publisher=White House|access-date=March 2, 2018}}
Trump had also indicated a desire to end the North American Free Trade Agreement with Canada and Mexico. His administration renegotiated the terms of the agreement. Trump had threatened to withdraw from it if negotiations failed.{{cite news|url=https://www.nytimes.com/interactive/2017/upshot/what-is-nafta.html|title=What Is Nafta, and How Might Trump Change It?|newspaper=The New York Times|access-date=April 5, 2017|date=January 25, 2017|last1=Irwin|first1=Neil|archive-date=April 28, 2017|archive-url=https://web.archive.org/web/20170428013544/https://www.nytimes.com/interactive/2017/upshot/what-is-nafta.html|url-status=live}} He specifically criticized the Ford Motor Co., Carrier Corporation, and Mondelez International for having operations based in Mexico.{{Cite news|url=https://www.nytimes.com/2016/03/11/us/politics/-trade-donald-trump-breaks-200-years-economic-orthodoxy-mercantilism.html|title=On Trade, Donald Trump Breaks With 200 Years of Economic Orthodoxy|last=Appelbaum|first=Binyamin|date=March 10, 2016|work=The New York Times|access-date=March 2, 2018|language=en-US|issn=0362-4331|archive-date=September 25, 2016|archive-url=https://web.archive.org/web/20160925032503/http://www.nytimes.com/2016/03/11/us/politics/-trade-donald-trump-breaks-200-years-economic-orthodoxy-mercantilism.html|url-status=live}}{{cite news|url=http://www.thedailybeast.com/articles/2015/08/18/trump-s-oreo-boycott.html|title=Donald Trump Won't Eat Oreos Because They're Too Mexican Now|date=August 8, 2015|work=Daily Beast|first=Michael|last=Daly|access-date=April 9, 2016|archive-date=May 29, 2017|archive-url=https://web.archive.org/web/20170529100000/http://www.thedailybeast.com/articles/2015/08/18/trump-s-oreo-boycott.html|url-status=live}} In August 2015, in response to Oreo maker Mondelez International's announcement that it would move manufacturing to Mexico, Trump said he would boycott Oreos. The new deal increased the percentage of parts and manufacturing that must be done in North America for domestic automobiles, setting a minimum wage for some workers on auto parts, and expanding access for U.S. dairy sales to Canada.{{cite web|url=https://www.cnbc.com/2018/10/01/new-trump-trade-deal-leaves-nafta-largely-intact.html|title=New Trump trade deal leaves NAFTA largely intact|first=John W.|last=Schoen|date=October 1, 2018|publisher=CNBC|access-date=December 23, 2018|archive-date=September 25, 2019|archive-url=https://web.archive.org/web/20190925100911/https://www.cnbc.com/2018/10/01/new-trump-trade-deal-leaves-nafta-largely-intact.html|url-status=live}}
Similar to his approach to trade deals, Trump also pledged, as part of the Contract with the American Voter, to impose tariffs to discourage companies from laying off workers or relocating to other countries, through an "End the Offshoring Act".{{Cite web|url=https://assets.donaldjtrump.com/_landings/contract/O-TRU-102316-Contractv02.pdf|title=Donald Trump's Contract with the American Voter|website=donaldjtrump.com|access-date=March 2, 2018|archive-date=March 7, 2018|archive-url=https://web.archive.org/web/20180307133648/https://assets.donaldjtrump.com/_landings/contract/O-TRU-102316-Contractv02.pdf|url-status=live}}{{Cite news|url=https://www.npr.org/2016/11/09/501451368/here-is-what-donald-trump-wants-to-do-in-his-first-100-days|title=Here Is What Donald Trump Wants To Do In His First 100 Days|work=NPR.org|access-date=March 27, 2018|language=en|archive-date=April 27, 2019|archive-url=https://web.archive.org/web/20190427120729/https://www.npr.org/2016/11/09/501451368/here-is-what-donald-trump-wants-to-do-in-his-first-100-days|url-status=live}}{{Cite web|url=https://www.politico.com/tipsheets/morning-trade/2017/04/chipping-away-at-lighthizers-confirmation-219957|title=Chipping away at Lighthizer's confirmation|website=Politico|date=April 25, 2017 |access-date=March 27, 2018|archive-date=March 27, 2018|archive-url=https://web.archive.org/web/20180327144617/https://www.politico.com/tipsheets/morning-trade/2017/04/chipping-away-at-lighthizers-confirmation-219957|url-status=live}} No such act has been introduced in Congress,{{Cite web|url=https://www.govtrack.us/congress/bills/browse?text=%22End+the+Offshoring+Act%22|title=Search Bills in Congress—GovTrack.us|website=GovTrack.us|language=en|access-date=March 27, 2018|archive-date=January 3, 2020|archive-url=https://web.archive.org/web/20200103220222/https://www.govtrack.us/congress/bills/browse?text=%22End+the+Offshoring+Act%22|url-status=live}}{{Cite web|url=https://www.axios.com/trumps-talk-big-act-small-white-house-1513388149-c1b390b3-f979-4c24-ac53-ef3092f25b77.html|title=Trump's talk big, act small White House|website=Axios|date=April 12, 2017 |language=en|access-date=March 27, 2018|archive-date=September 24, 2019|archive-url=https://web.archive.org/web/20190924050435/https://www.axios.com/trumps-talk-big-act-small-white-house-1513388149-c1b390b3-f979-4c24-ac53-ef3092f25b77.html|url-status=live}}{{cite news |last1=Golshan |first1=Tara |title=Why Trump Can Raise Tariffs Without Congress |url=https://www.vox.com/2018/3/8/17097206/trump-tariffs-congress |access-date=June 8, 2018 |archive-date=June 12, 2018 |archive-url=https://web.archive.org/web/20180612162045/https://www.vox.com/2018/3/8/17097206/trump-tariffs-congress |url-status=live }} but Trump moved to impose tariffs on solar panels, washing machines, steel, and aluminum. The enforcement of the tariffs fell primarily within the purview of the Department of Commerce and Office of the United States Trade Representative.
Trump repeatedly promised to lower America's trade deficit, and argued for a renegotiation of trade deals and imposition of tariffs to that end.{{Cite news|url=https://www.theguardian.com/business/2018/jun/19/donald-trump-tariffs-us-china|title=Why is Donald Trump threatening more tariffs—and what next?|last=Partington|first=Richard|date=June 19, 2018|work=The Guardian|access-date=2018-12-23|language=en-GB|issn=0261-3077|archive-date=August 16, 2019|archive-url=https://web.archive.org/web/20190816152646/https://www.theguardian.com/business/2018/jun/19/donald-trump-tariffs-us-china|url-status=live}}{{Cite news|url=https://www.washingtonpost.com/business/economy/why-the-us-trade-deficit-is-getting-bigger--despite-all-of-trumps-promises/2018/11/27/f2c2dd34-de1f-11e8-b3f0-62607289efee_story.html|title=Why the trade deficit is getting bigger—despite all of Trump's promises|year=2018|newspaper=The Washington Post|access-date=February 14, 2021|archive-date=December 30, 2019|archive-url=https://web.archive.org/web/20191230082200/https://www.washingtonpost.com/business/economy/why-the-us-trade-deficit-is-getting-bigger--despite-all-of-trumps-promises/2018/11/27/f2c2dd34-de1f-11e8-b3f0-62607289efee_story.html|url-status=live}} These efforts notwithstanding, during 2018 the trade deficit continued to increase.
In November 2018, Trump argued that the tariffs enriched the United States. He said the United States was gaining "Billions of Dollars" from "Tariffs being charged to China". He added, "If companies don't want to pay Tariffs, build in the U.S.A. Otherwise, let's just make our Country richer than ever before!" Fact-checkers and economists described the assertions made by Trump as false, with the Associated Press writing "Almost all economists say the president is wrong. That's because tariffs are taxes on imports. They can cause higher prices, reduce trade among countries and hurt overall economic growth as a result."{{Cite news|url=https://www.nytimes.com/2018/11/29/us/politics/how-tariffs-work-china.html|title=How Tariffs Work, and Why China Won't See a Bill|last=Tankersley|first=Jim|date=November 29, 2018|work=The New York Times|access-date=2018-12-23|language=en-US|issn=0362-4331|archive-date=January 3, 2020|archive-url=https://web.archive.org/web/20200103113447/https://www.nytimes.com/2018/11/29/us/politics/how-tariffs-work-china.html|url-status=live}}{{Cite news|url=https://www.boston.com/news/politics/2018/12/05/ap-fact-check-economists-say-trump-off-on-tariffs-impact|title=AP FACT CHECK: Economists say Trump off on tariffs' impact|date=December 5, 2018|work=The Boston Globe|access-date=2018-12-23|language=en-US|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200927/https://www.boston.com/news/politics/2018/12/05/ap-fact-check-economists-say-trump-off-on-tariffs-impact|url-status=live}}
=Legality=
Article{{nbsp}}1, Section{{nbsp}}8 of the Constitution: "Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises." But Congress has repeatedly shifted its powers regarding tariffs to the president.{{cite web|website=Vox|url=https://www.vox.com/2018/3/8/17097206/trump-tariffs-congress|title=Why Trump can raise steel tariffs without Congress|first=Tara|last=Golshan|date=March 8, 2018|access-date=June 8, 2018|archive-date=June 12, 2018|archive-url=https://web.archive.org/web/20180612162045/https://www.vox.com/2018/3/8/17097206/trump-tariffs-congress|url-status=live}} Beginning in 1917 with the Trading with the Enemy Act of 1917, the president can impose any tariff while the nation is at war. The affected trade does not have to be connected to the ongoing war. Since 1974, the Trade Act of 1974 allows the president to impose a 15% tariff for 150 days if there is "an adverse impact on national security from imports." After 150 days, the tariff expires unless extended by Congress.Gerard N. Magliocca: [https://balkin.blogspot.com/2019/05/if-chamber-of-commerce-is-listening.html If the Chamber of Commerce is listening...] - Balkinization, May 31, 2019 {{Webarchive|url=https://web.archive.org/web/20190602124803/https://balkin.blogspot.com/2019/05/if-chamber-of-commerce-is-listening.html|date=June 2, 2019}}
In 1977, the International Emergency Economic Powers Act shifted powers even more towards the White House. The Trump administration claims that it gives the President the authority to raise tariffs without any limits during a national emergency of any kind. Legal scholar Gerard Magliocca disagreed because the IEEPA does not mention tariffs at all and transfers no authority of tariffs towards the President.
Enacted
=Solar panels=
On January 23, 2018, Trump imposed tariffs on solar panels produced outside the United States. The tariffs initially started at 30% and gradually fell to 15% over the next four years.{{cite magazine|title=President Trump Slaps Tariffs on Solar Panels in Major Blow to Renewable Energy|last1=Eckhouse|first1=Brian|last2=Natter|first2=Ari|last3=Martin|first3=Christopher|url=https://time.com/5113472/donald-trump-solar-panel-tariff/|access-date=January 23, 2018|magazine=Time|date=January 23, 2018|archive-date=January 23, 2018|archive-url=https://web.archive.org/web/20180123040654/http://time.com/5113472/donald-trump-solar-panel-tariff/|url-status=live}}{{cite news|title=Trump's solar tariffs could put the brakes on rapid job growth in renewable energy|last=DiChristopher|first=Tom|url=https://www.cnbc.com/2018/01/23/trumps-solar-tariffs-could-slow-down-rapid-renewable-job-growth.html|access-date=January 23, 2018|publisher=CNBC|date=January 23, 2018|archive-date=January 23, 2018|archive-url=https://web.archive.org/web/20180123164845/https://www.cnbc.com/2018/01/23/trumps-solar-tariffs-could-slow-down-rapid-renewable-job-growth.html|url-status=live}} The first 2.5 gigawatts of solar cells imported each year were exempted from the tariff.{{Cite press release|url=https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/january/president-trump-approves-relief-us|title=President Trump Approves Relief for U.S. Washing Machine and Solar Cell Manufacturers|publisher=Office of the United States Trade Representative|date=January 2018|access-date=March 2, 2018|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302095726/https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/january/president-trump-approves-relief-us|url-status=live}}
{{Asof|2018}} China was the world leader in solar panel manufacture. It decried the tariffs,{{cite news|title=China blasts Trump's new trade tariffs|url=https://money.cnn.com/2018/01/22/news/economy/trump-trade-tariffs-china-reaction/index.html|access-date=January 23, 2018|work=CNNMoney|date=January 23, 2018|archive-date=January 23, 2018|archive-url=https://web.archive.org/web/20180123073812/http://money.cnn.com/2018/01/22/news/economy/trump-trade-tariffs-china-reaction/index.html|url-status=live}} with Zhong Shan, the Chinese Ministry of Commerce stating, "With regard to the wrong measures taken by the United States, China will work with other W.T.O. members to resolutely defend our legitimate interests."{{Cite news|url=https://www.nytimes.com/2018/01/22/business/trump-tariffs-washing-machines-solar-panels.html|title=Trump Slaps Steep Tariffs on Foreign Washing Machines and Solar Products|last1=Swanson|first1=Ana|year=2018|work=The New York Times|access-date=March 2, 2018|last2=Plumer|first2=Brad|language=en-US|issn=0362-4331|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302002218/https://www.nytimes.com/2018/01/22/business/trump-tariffs-washing-machines-solar-panels.html|url-status=live}}
In 2022, President Biden extended the now 15% tariff on solar panels another four years.{{cite web|url=https://www.reuters.com/business/energy/china-says-us-tariff-extension-solar-products-hurts-new-energy-trade-2022-02-05/|title=China says U.S. tariff extension on solar products hurts new energy trade|work=Reuters.com|agency=Reuters|date=February 7, 2022|accessdate=May 5, 2022}}
=Washing machines=
On January 23, 2018, in conjunction with the tariffs placed on solar panels, the Office of the U.S. Trade Representative announced tariffs on washing machines. According to the U.S. International Trade Commission (ITC), imports of large residential washers increased "steadily" from 2012 to 2016, and domestic producers' financial performance "declined precipitously".{{Cite web|url=https://www.usitc.gov/publications/safeguards/pub4745.pdf|title=Large Residential Washers: Investigation No. TA-201-076|website=usitc.gov|access-date=March 2, 2018|archive-date=December 29, 2017|archive-url=https://web.archive.org/web/20171229201756/https://www.usitc.gov/publications/safeguards/pub4745.pdf|url-status=live}} In the first year, the tariffs started at 20% for the first 1.2 million units of imported finished washers, and 50% for all further imports. In the second year the tariff was 18/45% and in the third year 16/40%.
The tariffs came after a petition was filed by Whirlpool, a U.S.-based washing machine manufacturer facing tough competition from LG Electronics and Samsung, which are both based in South Korea.{{Cite news|url=https://www.fool.com/investing/2018/01/26/trump-tariffs-is-now-the-time-to-buy-a-washing-mac.aspx|title=Trump Tariffs: Is Now the Time to Buy a Washing Machine?|last=Kline|first=Daniel B.|work=The Motley Fool|access-date=March 2, 2018|language=en|archive-date=March 5, 2018|archive-url=https://web.archive.org/web/20180305202829/https://www.fool.com/investing/2018/01/26/trump-tariffs-is-now-the-time-to-buy-a-washing-mac.aspx|url-status=live}}
Two weeks before the tariff announcement, Samsung moved its production of washing machines to a new plant in Newberry South Carolina; they opened a second line in March 2018, doubling manufacturing capacity at the plant.[https://columbiabusinessreport.com/samsung-launches-second-production-line-in-newberry/ Samsung launches second production line in Newberry] - Columbia Business Report, 18 March 2018 In late 2018 LG opened its first washing machine manufacturing site located in the US, in Clarksville, Tennessee, as part of a "preemptive move to reduce logistics costs, tariffs and delivery time," subsequently adding a dryer line in 2023[https://www.koreatimes.co.kr/business/tech-science/20230115/lgs-tennessee-factory-adds-dryer-line-to-get-closer-to-us-consumers LG's Tennessee factory adds dryer line to get closer to US consumers] - Korea Times, 15 January 2023
In January 2021, President Biden extended the washing machine tariffs by two years to February 2023, when they expired.[https://www.cbp.gov/trade/quota/bulletins/qb-23-505 QB 23-505 Large Residential Washers and Covered Parts Expiration 2023] - US Customs and Border Protection, 2 February 2023 There is conflicting information about the effects of the washing machine tariffs. UBS analysts reported that US consumers were paying 42% more for washing machines in 2022 than in 2017, compared to a 3% rise over the same time period in Europe.[https://www.ubs.com/global/en/wealthmanagement/insights/chief-investment-office/market-insights/paul-donovan/2024/tariff-spin-cycle.html The tariff spin cycle] Paul Donovan, UBS - 12 July 2024 An economic report from Duke University suggested washing machine prices changed little after the 2016 imposition of tariffs on washing machines from China as manufacturers could simply relocate to other export platform countries, but prices rose by ten per cent in the year after the 2018 imposition of the global tariffs on all imported washing machines, falling by 13 per cent after the tariffs expired in February 2023, suggesting a full passthrough of the cost of the tariffs to consumers.[https://news.duke.edu/stories/2024/09/13/expert-available-to-comment-on-effects-of-tariffs/ Duke News] - 13 September 2024 However an opinion piece in trade magazine IndustryWeek suggested that the price spike had been temporary, and that there had been no long term effect on prices.[https://www.industryweek.com/the-economy/trade/article/21280717/washing-machine-tariffs-come-out-clean-sparkling-for-us-manufacturing Washing-Machine Tariffs Come Out Clean, Sparkling for US Manufacturing] - Industry Week, 16 January 2024
=Steel and aluminum=
On March 1, 2018, Trump announced his intention to impose a 25% tariff on steel and a 10% tariff on aluminum imports.{{Cite web|url=https://www.axios.com/trump-declares-his-trade-war-targets-steel-aluminum-2f68d5fe-69ec-4872-b1d5-aaae28f7bf4b.html|title=Trump declares his trade war: targets steel, aluminum|website=Axios|date=March 2018 |language=en|access-date=March 1, 2018|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302080819/https://www.axios.com/trump-declares-his-trade-war-targets-steel-aluminum-2f68d5fe-69ec-4872-b1d5-aaae28f7bf4b.html|url-status=live}} In a tweet the next day, Trump asserted, "Trade wars are good, and easy to win."Damian Paletta, [https://www.washingtonpost.com/news/business/wp/2018/03/02/trump-insists-trade-wars-are-good-and-easy-to-win-after-vowing-new-tariffs/ Trump insists 'trade wars are good, and easy to win' after vowing new tariffs] {{Webarchive|url=https://web.archive.org/web/20180314085411/https://www.washingtonpost.com/news/business/wp/2018/03/02/trump-insists-trade-wars-are-good-and-easy-to-win-after-vowing-new-tariffs/ |date=March 14, 2018 }}, Washington Post (March 2, 2018). On March 8, he signed an order to impose the tariffs effective after 15 days. The EU, Canada, Mexico, Australia, Argentina, Brazil and South Korea were temporarily exempted from the order under a carve-out provision.Jim Brunsden and Shawn Donnan, [https://www.ft.com/content/fac4f67a-2db7-11e8-a34a-7e7563b0b0f4/ US grants last-minute exemptions to looming steel tariffs] {{Webarchive|url=https://web.archive.org/web/20180729050025/https://www.ft.com/content/fac4f67a-2db7-11e8-a34a-7e7563b0b0f4 |date=July 29, 2018 }}, Financial Times (March 22, 2018). Canada, Mexico, and the EU became subject to the steel and aluminium tariffs later in an announcement on May 31, 2018.{{cite news |title=Trump imposes steel and aluminum tariffs on the E.U., Canada and Mexico |url=https://www.washingtonpost.com/business/economy/trump-imposes-steel-and-aluminum-tariffs-on-the-european-union-canada-and-mexico/2018/05/31/891bb452-64d3-11e8-a69c-b944de66d9e7_story.html |newspaper=The Washington Post |date=May 31, 2018 |access-date=June 27, 2018 |archive-date=June 30, 2018 |archive-url=https://web.archive.org/web/20180630214322/https://www.washingtonpost.com/business/economy/trump-imposes-steel-and-aluminum-tariffs-on-the-european-union-canada-and-mexico/2018/05/31/891bb452-64d3-11e8-a69c-b944de66d9e7_story.html |url-status=live }}{{cite news |last1=Lynch |first1=David J. |title=Trump imposes tariffs on closest allies; Mexico and Europe announce retaliation |url=http://www.chicagotribune.com/business/ct-biz-trump-eu-steel-aluminum-tariffs-20180531-story.html |access-date=May 31, 2018 |work=Chicago Tribune |archive-date=May 31, 2018 |archive-url=https://web.archive.org/web/20180531152210/http://www.chicagotribune.com/business/ct-biz-trump-eu-steel-aluminum-tariffs-20180531-story.html |url-status=live }} The U.S., Canada, and Mexico would reach a deal to remove the steel and aluminum tariffs in May 2019, almost a year after going into effect.{{cite news|url=https://www.nytimes.com/2019/05/17/us/politics/china-auto-tariffs-donald-trump.html|title=Trump Lifts Metal Tariffs and Delays Auto Levies, Limiting Global Trade Fight|work=The New York Times|date=May 17, 2019|access-date=May 17, 2019|archive-date=May 17, 2019|archive-url=https://web.archive.org/web/20190517234016/https://www.nytimes.com/2019/05/17/us/politics/china-auto-tariffs-donald-trump.html|url-status=live}}
In December 2019, Trump tweeted that he would impose tariffs on Brazilian and Argentine metals, effective immediately, alleging the countries were manipulating their currencies to make their products more attractive in global markets. Economists disagreed the countries were devaluing their currencies, attributing the declines to global market forces. After speaking with Brazilian president Jair Bolsonaro, Trump days later backed down from his threat against Brazil, but made no mention of Argentina.{{Cite news|url=https://www.nytimes.com/2019/12/21/business/brazil-trump-tariffs-steel.html|title=Trump Backs Down From Threat to Place Tariffs on Brazilian Steel|first1=Ana|last1=Swanson|first2=Letícia|last2=Casado|newspaper=The New York Times |date=December 21, 2019|access-date=December 27, 2019|archive-date=December 27, 2019|archive-url=https://web.archive.org/web/20191227190013/https://www.nytimes.com/2019/12/21/business/brazil-trump-tariffs-steel.html|url-status=live}}
==Exemptions and lifting of steel tariffs==
While the 25% steel tariff applied to all countries worldwide, four countries (Argentina, Brazil, South Korea and Australia) successfully negotiated an exemption from it in 2018.{{cite web|url=https://globalnews.ca/news/4247328/roy-green-trade-war/|title=Roy Green: The first shots of a broad international trade war?|access-date=June 5, 2018|archive-date=June 3, 2018|archive-url=https://web.archive.org/web/20180603082459/https://globalnews.ca/news/4247328/roy-green-trade-war/|url-status=live}}{{cite news|url=https://www.ft.com/content/68659a66-30a8-11e8-b5bf-23cb17fd1498|title=South Korea secures US steel tariff exemption|author=Song Jung-a|date=March 26, 2018|access-date=May 12, 2019|work=Financial Times|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200926/https://www.ft.com/content/68659a66-30a8-11e8-b5bf-23cb17fd1498|url-status=live}}{{cite web|url=https://www.theaustralian.com.au/national-affairs/foreign-affairs/australia-given-permanent-exemption-on-us-tariffs/news-story/108061ac83ac1154761163c39ecdd092|title=Australia given permanent exemption on US tariffs|website=The Australian|date=May 2018|access-date=June 5, 2018|archive-date=February 14, 2021|archive-url=https://web.archive.org/web/20210214233247/https://www.theaustralian.com.au/subscribe/news/1/?sourceCode=TAWEB_WRE170_a&dest=https%3A%2F%2Fwww.theaustralian.com.au%2Fnational-affairs%2Fforeign-affairs%2Faustralia-given-permanent-exemption-on-us-tariffs%2Fnews-story%2F108061ac83ac1154761163c39ecdd092&memtype=anonymous&mode=premium&nk=c92230503b5dcbd6daccf4c8cd2bb0b6-1613345567|url-status=live}} In December 2019, President Trump threatened to reinstate steel and aluminium tariffs against Brazil and Argentina, although did not in the end pursue this.{{cite news|url=https://www.bbc.com/news/business-50633500|title=Trump to 'restore' tariffs on steel from Brazil and Argentina|author=Daniel Gallas(analysis)|access-date=December 2, 2019|publisher=BBC|archive-date=December 2, 2019|archive-url=https://web.archive.org/web/20191202170723/https://www.bbc.com/news/business-50633500|url-status=live}}
On May 17, 2019, the U.S. reached a deal to lift the steel and aluminum tariffs on Mexico and Canada. Lifting the tariffs were seen as helping pave the way for further ratification of the United States–Mexico–Canada Agreement. In a joint statement, the Canadian and the U.S. governments said the U.S. will scrap the metals duties within two days of the deal. Canada will remove tariffs levied on American goods in retaliation for the steel and aluminum duties. The countries agreed to drop all pending litigation in the World Trade Organization related to the tariffs, set up measures to "prevent the importation of aluminum or steel that is unfairly subsidized and/or sold at dumped prices" and "prevent the transshipment of aluminum and steel made outside of Canada or the United States to the other country" and make an "agreed-upon process for monitoring aluminum and steel trade between them". In a separate statement, the Mexican government also said it would remove retaliatory tariffs it put on the U.S. and cease pending litigation. Mexico also said it would set up measures to stop unfair trade practices in the aluminum and steel markets and to monitor trade of the metals in North America.
In 2021, the Biden administration reached settlements with the United Kingdom and Japan to remove the tariffs.{{Cite web|url=https://www.politico.com/news/2022/12/09/wto-ruling-trump-tariffs-violate-rules-00073282|title=WTO says Trump's steel tariffs violated global trade rules|first=Doug|last=Palmer|date=December 9, 2022|website=POLITICO}} The same year, President Biden and European Union President Ursula von der Leyen suspended tariffs for specific quantities of aluminum and steel that were entirely manufactured within the EU, while they pursued a longer-term trade agreement. The Biden administration subsequently advocated for a Global Arrangement on Sustainable Steel and Aluminum, a trade pact that connects U.S. and European markets and taxes steel producers based on their membership and the environmental impact of their metal production.{{Cite web |last=Harris |first=Lee |date=2023-10-11 |title=U.S. and EU Struggle to Form Green Steel Club |url=https://prospect.org/api/content/05f20312-679b-11ee-abd7-12163087a831/ |access-date=2023-10-12 |website=The American Prospect |language=en-us}}
=Legal basis and challenges=
The legal basis cited in Trump's tariff order is Section 232 of the Trade Expansion Act of 1962 which under certain circumstances allows the president to impose tariffs based on the recommendation from the U.S. Secretary of Commerce if "an article is being imported into the United States in such quantities or under such circumstances as to threaten or impair the national security."Shannon Togawa Mercer & Matthew Kahn, [https://www.lawfaremedia.org/article/america-trades-down-legal-consequences-president-trumps-tariffs America Trades Down: The Legal Consequences of President Trump's Tariffs] {{Webarchive|url=https://web.archive.org/web/20231004205225/https://www.lawfaremedia.org/article/america-trades-down-legal-consequences-president-trumps-tariffs |date=October 4, 2023 }}, Lawfare (March 13, 2018). This section is rarely used, and has never been invoked since the World Trade Organization was established in 1995.Tom Miles, [https://www.reuters.com/article/us-usa-trade-explainer/trumps-extraordinary-tariffs-idUSKBN1GH2IR Trump's extraordinary tariffs] {{Webarchive|url=https://web.archive.org/web/20180314045526/https://www.reuters.com/article/us-usa-trade-explainer/trumps-extraordinary-tariffs-idUSKBN1GH2IR |date=March 14, 2018 }}, Reuters (March 5, 2018).
China initiated a WTO complaint against the U.S. steel and aluminum tariffs on April 9, 2018.{{Cite web|url=https://www.wto.org/english/news_e/news18_e/ds544rfc_09apr18_e.htm|title=China initiates WTO dispute complaint against US tariffs on steel, aluminium products|date=April 9, 2018|website=wto.org|language=en|access-date=June 2, 2018|archive-date=June 5, 2018|archive-url=https://web.archive.org/web/20180605184537/https://www.wto.org/english/news_e/news18_e/ds544rfc_09apr18_e.htm|url-status=live}} The EU opened a similar WTO case on June 1, 2018.{{Cite web|url=https://www.theguardian.com/business/2018/jun/01/eu-starts-retaliation-against-donald-trumps-steel-and-aluminium-tariffs|title=EU opens WTO case against Trump's steel and aluminium tariffs|last=Rankin|first=Jennifer|date=June 1, 2018|website=The Guardian|language=en|access-date=June 2, 2018|archive-date=June 1, 2018|archive-url=https://web.archive.org/web/20180601232132/https://www.theguardian.com/business/2018/jun/01/eu-starts-retaliation-against-donald-trumps-steel-and-aluminium-tariffs|url-status=live}}
On June 9, 2018, Trump tweeted a statement addressing Prime Minister of Canada Justin Trudeau in which he said American tariffs targeting Canada "are in response to his [tariffs] of 270% on dairy!"{{cite tweet |title=PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, "US Tariffs were kind of insulting" and he "will not be pushed around." Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy! |first=Donald J. |last=Trump |user=realDonaldTrump |number=1005586562959093760 |date=June 9, 2018}} In the tweet, Trump did not cite national security, the legal basis for implementing the tariff.{{cite web |last1=Sanchez |first1=Luis |title=Trump rips 'meek and mild' Trudeau for criticizing US tariffs |url=https://thehill.com/homenews/administration/391515-trump-rips-meek-and-mild-trudeau-for-criticizing-tariffs/ |work=The Hill |access-date=June 10, 2018 |date=June 9, 2018 |archive-date=June 10, 2018 |archive-url=https://web.archive.org/web/20180610074846/http://thehill.com/homenews/administration/391515-trump-rips-meek-and-mild-trudeau-for-criticizing-tariffs |url-status=live }}{{cite web |last1=Chait |first1=Jonathan |author-link1=Jonathan Chait |title=Trump Confesses Illegal Motive, Blows Up Legal Basis for His Trade War |url=https://nymag.com/daily/intelligencer/2018/06/trump-confesses-motive-blows-up-legal-basis-for-trade-war.html |work=New York |date=June 10, 2018 |access-date=June 11, 2018}}
In December 2022, the WTO ruled against the United States in steel and aluminum cases brought by China, Norway, Switzerland, and Turkey, saying that there was no national security emergency that justified U.S. invocation of the exception. USTR spokesperson Adam Hodge, responded that "The United States has held the clear and unequivocal position, for over 70 years, that issues of national security cannot be reviewed in WTO dispute settlement and the WTO has no authority to second-guess the ability of a WTO member to respond to a wide-range of threats to its security." The Biden administration condemned the decision and affirmed that they would not remove the tariffs Trump had imposed. The United States has blocked appointment of judges to the WTO appeals court, so its appeal prevents the ruling from being adopted. Cases brought by Russia and India remain unresolved.
=Economic and trade analysis=
File:Effect of free trade on surplus v1.png (the area under the demand curve but above price) by X+Z as consumers can purchase more goods at lower prices. However, it also reduces producer surplus (the area above the supply curve but below the price) by X, as domestic producers supply fewer goods at lower prices. Domestic producers will choose to produce at Qt, with the quantity gap between Qt and Ct filled by imports. This overall gain from free trade is area Z, although there are winners (consumers) and losers (domestic firms and their employees).{{cite book|last1=Krugman|first1=Paul|author-link1=Paul Krugman|last2=Wells|first2=Robin|author-link2=Robin Wells|year=2005|title=Microeconomics|publisher=Worth|isbn=0-7167-5229-8|url-access=registration|url=https://archive.org/details/microeconomics00krug}}]]
File:Effect of Import Tariff - v1.png (the area above price but under the demand curve) by areas A+B+C+D, while expanding producer surplus (the area below price but above the supply curve) by A and government revenue by C (the import quantity times the tariff price.) Areas B and D are dead-weight losses, surplus lost by consumers and overall.]]
A survey of leading economists by the Initiative on Global Markets at the University of Chicago Booth School of Business showed a consensus that imposing new U.S. tariffs on steel and aluminum will not improve Americans' welfare.{{Cite web|url=http://www.igmchicago.org/surveys/steel-and-aluminum-tariffs|title=Steel and Aluminum Tariffs|website=igmchicago.org|access-date=March 12, 2018|archive-date=March 12, 2018|archive-url=https://web.archive.org/web/20180312212826/http://www.igmchicago.org/surveys/steel-and-aluminum-tariffs|url-status=live}} Economists say the tariffs will lead to more harm than gains, as the price for steel increases, which will harm consumers and Americans working in manufacturing industries that use steel (these jobs outnumber those who work in steel-producing sectors by 80 to 1).{{Cite news|url=https://www.economist.com/news/business-and-finance/21737843-get-them-he-causing-chaos-president-donald-trump-wants-tariffs-steel-and|title=President Donald Trump wants tariffs on steel and aluminium|newspaper=The Economist|language=en|access-date=March 9, 2018|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308112614/https://www.economist.com/news/business-and-finance/21737843-get-them-he-causing-chaos-president-donald-trump-wants-tariffs-steel-and|url-status=live}}{{Cite news|url=http://econofact.org/will-steel-tariffs-put-u-s-jobs-at-risk|title=Will Steel Tariffs Put U.S. Jobs at Risk? {{!}} Econofact|date=February 26, 2018|work=Econofact|access-date=March 9, 2018|language=en-US|quote=...{{nbsp}}because steel is an input into so many other products, the measures more likely will trade off jobs saved in steel industry against job losses in other manufacturing industries. The losses could be substantial because the number of jobs in U.S. industries that use steel or inputs made of steel outnumber the number of jobs involved in the production of steel by roughly 80 to 1.|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308233722/http://econofact.org/will-steel-tariffs-put-u-s-jobs-at-risk|url-status=live}}{{Cite news|url=https://www.nytimes.com/2018/03/01/upshot/trump-tariff-steel-aluminum-explain.html|title=The Real Risks of Trump's Steel and Aluminum Tariffs|last=Irwin|first=Neil|date=March 1, 2018|work=The New York Times|access-date=March 9, 2018|language=en-US|issn=0362-4331|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308233719/https://www.nytimes.com/2018/03/01/upshot/trump-tariff-steel-aluminum-explain.html|url-status=live}}
The big winners of the tariffs are some American steel- and aluminum-producing industries; some of the producers (especially small- and middle-sized ones) who are reliant on foreign inputs may struggle as a result of the tariffs.{{Cite news|url=https://www.nytimes.com/2018/03/03/business/economy/tariff-blue-collar.html|title=Trump's Tariff Plan Leaves Blue-Collar Winners and Losers|last1=Kitroeff|first1=Natalie|date=March 3, 2018|work=The New York Times|access-date=March 9, 2018|last2=Swanson|first2=Ana|language=en-US|issn=0362-4331|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308075234/https://www.nytimes.com/2018/03/03/business/economy/tariff-blue-collar.html|url-status=live}}{{Cite news|url=https://www.ft.com/content/4e750190-21a9-11e8-a895-1ba1f72c2c11|title=Struggling US steel mills fear hammer blow to jobs|website=Financial Times|date=March 7, 2018 |language=en-GB|access-date=March 9, 2018|archive-date=March 10, 2018|archive-url=https://web.archive.org/web/20180310010150/https://www.ft.com/content/4e750190-21a9-11e8-a895-1ba1f72c2c11|url-status=live}} A study of the proposal indicated that it would lead to an estimated loss of 146,000 jobs.{{Cite web|url=https://qz.com/1221912/trump-tariffs-five-us-jobs-will-be-lost-for-every-new-one-created-by-trumps-steel-tariffs/|title=Five US jobs will be lost for every new one created by Trump's steel tariffs|last=Timmons|first=Heather|date=March 5, 2018|website=Quartz (publication)|access-date=March 7, 2018|archive-date=March 6, 2018|archive-url=https://web.archive.org/web/20180306031130/https://qz.com/1221912/trump-tariffs-five-us-jobs-will-be-lost-for-every-new-one-created-by-trumps-steel-tariffs/|url-status=live}} Studies of the 2002 steel tariffs enacted by the Bush administration show that they caused more job losses than job gains. Jobs losses could be even greater if other countries retaliate against the United States with their own tariffs on various American products.{{Cite news|url=https://www.washingtonpost.com/business/economy/trump-finally-gets-his-tariffs--and-much-of-the-world-recoils/2018/03/01/ee277bd8-1d89-11e8-9de1-147dd2df3829_story.html|title=Trump finally gets his tariffs—and much of the world recoils|last1=Lynch|first1=David J.|date=March 2, 2018|newspaper=The Washington Post|access-date=March 9, 2018|last2=Dewey|first2=Caitlin|language=en-US|issn=0190-8286|archive-date=March 9, 2018|archive-url=https://web.archive.org/web/20180309010902/https://www.washingtonpost.com/business/economy/trump-finally-gets-his-tariffs--and-much-of-the-world-recoils/2018/03/01/ee277bd8-1d89-11e8-9de1-147dd2df3829_story.html|url-status=live}}
Scholars warned that the Trump administration's use of "national security" rationalesthe rationales are named in Trump's [https://trumpwhitehouse.archives.gov/presidential-actions/presidential-proclamation-adjusting-imports-steel-united-states/ Presidential proclamation (www.whitehouse.gov)] {{Webarchive|url=https://web.archive.org/web/20210120202456/https://trumpwhitehouse.archives.gov/presidential-actions/presidential-proclamation-adjusting-imports-steel-united-states/ |date=January 20, 2021 }} (these have not been commonly used by past administrations) for the tariffs could undermine the international trading order, as other states could use the same rationales for their own tariffs.{{Cite news|url=https://www.washingtonpost.com/news/monkey-cage/wp/2018/03/01/trump-has-announced-massive-aluminum-and-steel-tariffs-here-are-5-things-you-need-to-know/|title=Analysis {{!}} Trump has announced massive aluminum and steel tariffs. Here are five things you need to know.|last=Bown|first=Chad P.|date=March 1, 2018|newspaper=The Washington Post|access-date=March 9, 2018|language=en-US|issn=0190-8286|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308182139/https://www.washingtonpost.com/news/monkey-cage/wp/2018/03/01/trump-has-announced-massive-aluminum-and-steel-tariffs-here-are-5-things-you-need-to-know/|url-status=live}}{{Cite news|url=https://www.nytimes.com/2018/03/23/business/trump-world-trade-organization.html|title=Trump Just Pushed the World Trade Organization Toward Irrelevance|last=Goodman|first=Peter S.|date=March 23, 2018|work=The New York Times|access-date=March 23, 2018|language=en-US|issn=0362-4331|archive-date=March 23, 2018|archive-url=https://web.archive.org/web/20180323113210/https://www.nytimes.com/2018/03/23/business/trump-world-trade-organization.html|url-status=live}} The WTO allows states to take actions necessary to ensure their national security, but this provision has been sparsely used, given that it could be abused.{{Cite news|url=https://www.cfr.org/blog/donald-trump-steel-tariffs-and-costs-chaos|title=Donald Trump, Steel Tariffs, and the Costs of Chaos|work=Council on Foreign Relations|access-date=March 9, 2018|language=en|archive-date=March 10, 2018|archive-url=https://web.archive.org/web/20180310010108/https://www.cfr.org/blog/donald-trump-steel-tariffs-and-costs-chaos|url-status=live}} Whereas national security reasons were cited for the tariffs, it has been noted that tariffs primarily harm American allies, not enemies; the United States imports very little steel and aluminum from China directly.{{Cite news|url=https://hbr.org/2018/03/what-we-do-and-dont-know-after-trumps-tariff-announcement|title=What We Do and Don't Know After Trump's Tariff Announcement|last=Bown|first=Chad P.|date=March 9, 2018|work=Harvard Business Review|access-date=March 9, 2018|archive-date=March 10, 2018|archive-url=https://web.archive.org/web/20180310135640/https://hbr.org/2018/03/what-we-do-and-dont-know-after-trumps-tariff-announcement|url-status=live}} Trade experts furthermore noted that the United States already produces more than two-thirds of its own steel.
Forty-five U.S. trade associations are urging Trump not to impose tariffs on China, warning it would be "particularly harmful" to the U.S. economy and consumers.Pete Schroeder, [https://www.reuters.com/article/us-usa-trump-china/forty-five-u-s-trade-groups-urge-trump-to-avoid-tariffs-against-china-idUSKBN1GU122 Forty-five U.S. trade groups urge Trump to avoid tariffs against China] {{Webarchive|url=https://web.archive.org/web/20180323155848/https://www.reuters.com/article/us-usa-trump-china/forty-five-u-s-trade-groups-urge-trump-to-avoid-tariffs-against-china-idUSKBN1GU122 |date=March 23, 2018 }}, Reuters (March 18, 2018).
The National Retail Federation has been vocal in its opposition of the tariffs. The NRF also launched an ad campaign with Ben Stein, who reprised his role as the economics teacher from "Ferris Bueller's Day Off" arguing that tariffs are bad economics and hurt consumers.{{Cite news|url=https://www.cnbc.com/2018/07/11/tariffs-arent-going-to-work-this-timenational-retail-federation-c.html|title=National Retail Federation CEO says Trump's tariffs 'aren't going to work,' will raise prices|last=Lucas|first=Amelia|date=July 11, 2018|publisher=CNBC|access-date=2018-09-12|archive-date=September 13, 2018|archive-url=https://web.archive.org/web/20180913002308/https://www.cnbc.com/2018/07/11/tariffs-arent-going-to-work-this-timenational-retail-federation-c.html|url-status=live}}{{Cite news|url=https://www.cnbc.com/2018/04/04/tariffs-on-appliances-electronics-would-hit-consumers-in-the-wallet-us-retailers.html|title=Trump tariffs on appliances, electronics will hit American consumers, retailers warn|last=Thomas|first=Lauren|date=April 4, 2018|publisher=CNBC|access-date=2018-09-12|archive-date=September 13, 2018|archive-url=https://web.archive.org/web/20180913002318/https://www.cnbc.com/2018/04/04/tariffs-on-appliances-electronics-would-hit-consumers-in-the-wallet-us-retailers.html|url-status=live}}{{Cite news|url=https://www.bloomberg.com/news/articles/2018-05-14/retailers-try-ferris-bueller-plan-to-oppose-trump-s-tariffs|title=Terms of Service Violation|newspaper=Bloomberg.com|date=May 14, 2018 |access-date=2018-09-12|archive-date=September 13, 2018|archive-url=https://web.archive.org/web/20180913002323/https://www.bloomberg.com/news/articles/2018-05-14/retailers-try-ferris-bueller-plan-to-oppose-trump-s-tariffs|url-status=live}}
General Motors announced closure of plants in Maryland, Michigan, Ohio, and Ontario, and cutting over 14,000 jobs, citing steel tariffs as a factor.{{cite news|url=https://www.nytimes.com/2018/11/26/business/general-motors-cutbacks.html|title=G.M. to Idle Plants and Cut Thousands of Jobs as Sales Slow|work=The New York Times|date=November 26, 2018 |access-date=December 6, 2018|archive-date=December 6, 2018|archive-url=https://web.archive.org/web/20181206025507/https://www.nytimes.com/2018/11/26/business/general-motors-cutbacks.html|url-status=live|last1=Boudette |first1=Neal E. }}{{cite web|url=https://www.cbc.ca/news/business/gm-canada-president-says-electric-vehicles-are-the-future-but-they-won-t-be-made-in-oshawa-1.4931107|title=GM Canada president says electric vehicles are the future—but they won't be made in Oshawa|publisher=Canadian Broadcasting Corporation|access-date=December 6, 2018|archive-date=December 5, 2018|archive-url=https://web.archive.org/web/20181205234041/https://www.cbc.ca/news/business/gm-canada-president-says-electric-vehicles-are-the-future-but-they-won-t-be-made-in-oshawa-1.4931107|url-status=live}} Trump expressed frustration with the decision.{{cite web|url=https://www.usatoday.com/story/news/politics/2018/11/26/president-trump-not-happy-gm-plan-cut-cars-workers/2118193002/|title=Trump blasts GM plan to cut plants, says he was 'tough' on CEO Mary Barra|work=USA Today|access-date=December 6, 2018|archive-date=December 6, 2018|archive-url=https://web.archive.org/web/20181206105304/https://www.usatoday.com/story/news/politics/2018/11/26/president-trump-not-happy-gm-plan-cut-cars-workers/2118193002/|url-status=live}}
=Domestic political response=
Domestically, reactions from elected officials often varied among regional lines rather than ideological lines.{{Cite web|url=https://www.cnbc.com/amp/2018/03/04/trumps-steel-tariffs-are-earning-him-cheers-from-democrats-and-unions.html|title=Trump's steel tariffs are earning him cheers from Democrats and unions|publisher=CNBC |agency=Associated Press|access-date=March 14, 2018|archive-date=March 14, 2018|archive-url=https://web.archive.org/web/20180314104541/https://www.cnbc.com/amp/2018/03/04/trumps-steel-tariffs-are-earning-him-cheers-from-democrats-and-unions.html|url-status=live}} The tariffs saw widespread criticism from conservatives and Republicans.{{Cite web|first=Haley|last=Britzky|url=https://www.axios.com/the-response-to-trumps-tariffs-2c17a057-3a5b-4f1e-9fe2-edf8a1a4570b.html|title=The response to Trump's tariffs, from Congress, businesses, and abroad|website=Axios|date=March 1, 2018|access-date=March 8, 2018|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308080356/https://www.axios.com/the-response-to-trumps-tariffs-2c17a057-3a5b-4f1e-9fe2-edf8a1a4570b.html|url-status=live}}{{Cite web|url=https://www.theatlantic.com/politics/archive/2018/03/republicans-cant-stop-trumps-trade-war-tariffs/554903/|title=Republicans can't stop Trump's left-wing drift on trade|last=Berman|first=Russell|date=March 6, 2018|website=The Atlantic|access-date=March 14, 2018|archive-date=March 14, 2018|archive-url=https://web.archive.org/web/20180314174303/https://www.theatlantic.com/politics/archive/2018/03/republicans-cant-stop-trumps-trade-war-tariffs/554903/|url-status=live}}{{Cite web|url=https://www.rollcall.com/news/politics/gop-reaction-trump-tariffs-fast-furious-negative|title=Republican Reaction To Trade Taxes: Fast, Furious, Negative|last=Williams|first=Joe|website=Roll Call|date=March 2018 |access-date=March 8, 2018|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308010517/https://www.rollcall.com/news/politics/gop-reaction-trump-tariffs-fast-furious-negative|url-status=live}} However, the Republican-controlled Congress had declined to take any action to counter Trump's imposition of tariffs.Lindsey McPherson, [https://www.rollcall.com/news/policy/ryan-congress-wont-pass-tariff-legislation-trump-wouldnt-sign Ryan: Congress Won't Pass Tariff Legislation Trump Wouldn't Sign] {{Webarchive|url=https://web.archive.org/web/20180701030517/https://www.rollcall.com/news/policy/ryan-congress-wont-pass-tariff-legislation-trump-wouldnt-sign |date=July 1, 2018 }}, Roll Call (June 6, 2018).Susan Davis, [https://www.npr.org/2018/03/08/591656709/congressional-republicans-unlikely-to-act-to-counter-trump-on-tariffs Congressional Republicans Unlikely To Act To Counter Trump On Tariffs] {{Webarchive|url=https://web.archive.org/web/20180701002024/https://www.npr.org/2018/03/08/591656709/congressional-republicans-unlikely-to-act-to-counter-trump-on-tariffs |date=July 1, 2018 }}, All Things Considered (March 8, 2018). Speaker Paul Ryan said Congress would not pass any tariff legislation that Trump would veto.
Reception was mixed among Democratic officials,{{Cite web|url=https://thehill.com/policy/finance/377514-dems-tread-cautiously-on-trumps-tariffs/|newspaper=The Hill|date=March 9, 2018|first1=Amie|last1=Parnes|first2=Jordain|last2=Carney|title=Dems tread cautiously on Trump's tariffs|access-date=March 14, 2018|archive-date=March 14, 2018|archive-url=https://web.archive.org/web/20180314035409/http://thehill.com/policy/finance/377514-dems-tread-cautiously-on-trumps-tariffs|url-status=live}} with Democrats from Rust Belt states voicing support for tariffs on steel and aluminum imports.{{Cite web|first=Susan|last=Cornwell|url=https://www.reuters.com/article/us-usa-trade-trump-democrats/rust-belt-democrats-praise-trumps-threatened-metals-tariffs-idUSKCN1GE2U1|title=Rust-belt Democrats praise Trump's threatened metals tariffs|date=March 2, 2018|work=Reuters|access-date=March 14, 2018|archive-date=March 14, 2018|archive-url=https://web.archive.org/web/20180314174216/https://www.reuters.com/article/us-usa-trade-trump-democrats/rust-belt-democrats-praise-trumps-threatened-metals-tariffs-idUSKCN1GE2U1|url-status=live}}
The AFL–CIO, the largest labor union in the U.S., praised Trump for the tariffs, as did Democratic Ohio Senator Sherrod Brown, who said the action would be a boon for "steel plants across Ohio". Many congressional Republicans expressed fear that the tariffs might damage the economy or lead to retaliatory tariffs from other countries. Speaker of the House Paul Ryan and Senate Majority Leader Mitch McConnell urged Trump to rethink his proposal or to target the tariffs more narrowly so as to avoid "unintended consequences and collateral damage".{{cite news|url=https://www.latimes.com/politics/la-na-pol-gop-tariffs-20180306-story.html|title=Republican congressional leaders push Trump to cancel or narrow his tariff plan, but president appears unmoved|last=Decker|first=Cathleen|date=March 6, 2018|work=Los Angeles Times|access-date=March 8, 2018|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308103825/http://www.latimes.com/politics/la-na-pol-gop-tariffs-20180306-story.html|url-status=live}}
House Minority Leader Nancy Pelosi, while calling for strategic and targeted actions against "trade cheaters", criticized Trump's rollout of the tariffs, calling it "chaotic" and saying it was "maximizing the collateral damage to American workers, consumers and our international alliances".{{Cite press release|url=https://pelosi.house.gov/news/press-releases/pelosi-statement-on-president-trump-s-steel-aluminum-tariffs|title=Pelosi Statement on President Trump's Steel & Aluminum Tariffs|date=March 8, 2018|author=Congresswoman Nancy Pelosi|access-date=March 21, 2018|language=en|archive-date=March 21, 2018|archive-url=https://web.archive.org/web/20180321193050/https://pelosi.house.gov/news/press-releases/pelosi-statement-on-president-trump-s-steel-aluminum-tariffs|url-status=live}} The proposal drew comparisons to a tariff imposed by his Republican presidential predecessor, George W. Bush; in 2002 the U.S. imposed heavy steel tariffs that were largely seen as ineffectual or even harmful to the U.S., and were withdrawn after 18 months.{{cite news|url=https://www.politico.com/story/2018/03/07/steel-tariffs-trump-bush-391426|title=Why steel tariffs failed when Bush was president|last=Palmer|first=Doug|date=March 7, 2018|work=Politico|access-date=March 8, 2018|archive-date=March 8, 2018|archive-url=https://web.archive.org/web/20180308025937/https://www.politico.com/story/2018/03/07/steel-tariffs-trump-bush-391426|url-status=live}}
On March 6, 2018, Gary Cohn, chair of the National Economic Council, announced his intention to resign; the announcement followed Trump's cancellation of a meeting with end-users of steel and aluminum that Cohn had arranged in an attempt to dissuade the president from the planned tariffs.{{cite news|url=https://www.cnbc.com/2018/03/06/gary-cohn-plans-to-resign-as-trumps-top-economic-advisor-new-york-times.html|title=Gary Cohn resigns as Trump's top economic advisor|last1=Mangan|first1=Dan|last2=Pramuk|first2=Jacob|date=March 6, 2018|publisher=CNBC|access-date=March 6, 2018|archive-date=March 6, 2018|archive-url=https://web.archive.org/web/20180306224720/https://www.cnbc.com/2018/03/06/gary-cohn-plans-to-resign-as-trumps-top-economic-advisor-new-york-times.html|url-status=live}}
A March 2018 Quinnipiac University poll showed widespread disapproval of the tariffs, with only 29% of Americans agreeing with a "25% tariff on steel imports and a 10% tariff on aluminum imports" if it raised their cost of living.{{Cite web|url=https://poll.qu.edu/national/release-detail?ReleaseID=2525|title=U.S. Voters Oppose Steel, Aluminum Tariffs|date=March 7, 2018|publisher=Quinnipiac University Polling Institute|access-date=March 7, 2018|archive-date=March 6, 2018|archive-url=https://web.archive.org/web/20180306200553/https://poll.qu.edu/national/release-detail?ReleaseID=2525|url-status=live}}
On June 13, 2019, 661 American companies sent a letter to Trump urging him to resolve the trade dispute with China. The letter was one of many sent on behalf of Tariffs Hurt the Heartland, an organization of over 150 trade groups representing agriculture, manufacturing, retailing and technology companies.{{Cite web|url=https://www.reuters.com/article/us-usa-trade-china-tariffs-idUSKCN1TE36K|title=Over 600 U.S. companies urge Trump to resolve trade dispute with{{nbsp}}...|date=June 13, 2019|work=Reuters|access-date=June 13, 2019|archive-date=June 13, 2019|archive-url=https://web.archive.org/web/20190613234138/https://www.reuters.com/article/us-usa-trade-china-tariffs-idUSKCN1TE36K|url-status=live}}{{Cite web |website=tariffshurt.com |url=https://tariffshurt.com/wp-content/uploads/2019/06/THH-China-Tariffs-Company-Association-Letter-to-President-Trump-061319_Final.pdf |title=On behalf of the undersigned companies… |access-date=May 30, 2023 |language=en |archive-date=September 30, 2019 |archive-url=https://web.archive.org/web/20190930223937/https://tariffshurt.com/wp-content/uploads/2019/06/THH-China-Tariffs-Company-Association-Letter-to-President-Trump-061319_Final.pdf |url-status=live }}
=Chinese products=
{{Main|China–United States trade war}}
File:United States Balance of Trade Deficit-pie chart.svg
On March 22, 2018, Trump signed a memorandum under the Section 301 of the Trade Act of 1974, instructing the United States Trade Representative (USTR) to apply tariffs of $50 billion on Chinese goods. Trump said the tariffs would be imposed due to Chinese theft of U.S. intellectual property.{{Cite news|url=https://www.cnn.com/2018/03/22/politics/donald-trump-china-tariffs-trade-war/index.html|title=Trump hits China with tariffs, heightening concerns of global trade war|first=Jeremy|last=Diamond|author-link=Jeremy Diamond (journalist)|publisher=CNN|access-date=March 22, 2018|archive-date=March 22, 2018|archive-url=https://web.archive.org/web/20180322153028/https://www.cnn.com/2018/03/22/politics/donald-trump-china-tariffs-trade-war/index.html|url-status=live}} Trump said his planned tariffs on Chinese imports would make the United States "a much stronger, much richer nation".{{Cite news |url=https://www.cnbc.com/2018/03/22/the-associated-press-trump-takes-1st-step-on-tariffs-on-chinese-imports-says-penalties-will-make-us-a-much-stronger-much-richer-nation.html |title=Trump takes 1st step on tariffs on Chinese imports, says penalties will make US 'a much stronger, much richer nation' |date=March 22, 2018 |access-date=March 23, 2018 |publisher=CNBC |archive-date=March 23, 2018 |archive-url=https://web.archive.org/web/20180323092523/https://www.cnbc.com/2018/03/22/the-associated-press-trump-takes-1st-step-on-tariffs-on-chinese-imports-says-penalties-will-make-us-a-much-stronger-much-richer-nation.html |url-status=live }} However, the steps toward imposing the tariffs led to increased concerns of a global trade war.
The Dow Jones Industrial Average fell 724 points, or 2.9%, after the tariffs were announced due to concerns over a trade war.{{Cite news|url=https://money.cnn.com/2018/03/22/investing/dow-jones-trade-war-china/index.html|title=Dow plunges 724 points as trade war fears rock Wall Street|last=Egan|first=Matt|date=March 22, 2018|work=CNN Money|access-date=March 23, 2018|archive-date=March 22, 2018|archive-url=https://web.archive.org/web/20180322225710/http://money.cnn.com/2018/03/22/investing/dow-jones-trade-war-china/index.html|url-status=live}} Corporations that traded with China, such as Caterpillar Inc. and Boeing, suffered large losses in their stock price.{{Cite news|url=https://www.latimes.com/business/la-fi-financial-markets-20180322-story.html|title=Stocks dive as sanctions on China fuel trade-war fears; Dow drops 700-plus points|date=March 22, 2018|work=Los Angeles Times|access-date=March 23, 2018|archive-date=March 22, 2018|archive-url=https://web.archive.org/web/20180322223957/http://www.latimes.com/business/la-fi-financial-markets-20180322-story.html|url-status=live}}
In response, the Ministry of Commerce of China announced plans to implement its own tariffs on 128 U.S. products. 120 of those products, such as fruit and wine, will be taxed at a 15% duty while the remaining eight products, including pork, will receive a 25% tariff.{{cite web|url=http://fortune.com/2018/04/02/china-tariffs-128-us-products/|title=All 128 U.S. Products China Is Enacting Tariffs On|work=Fortune|date=April 2, 2018|access-date=April 2, 2018|archive-date=April 3, 2018|archive-url=https://web.archive.org/web/20180403002403/http://fortune.com/2018/04/02/china-tariffs-128-us-products/|url-status=live}}{{cite web|url=https://www.nytimes.com/2018/04/01/world/asia/china-tariffs-united-states.html|title=China Slaps Tariffs on 128 U.S. Products, Including Wine, Pork and Pipes|work=The New York Times|date=April 1, 2018|access-date=April 2, 2018|archive-date=April 2, 2018|archive-url=https://web.archive.org/web/20180402191122/https://www.nytimes.com/2018/04/01/world/asia/china-tariffs-united-states.html|url-status=live}} China implemented their tariffs on April 2, 2018.{{Cite web|url=https://qz.com/1242652/china-tariffs-the-complete-list-of-128-affected-good-class-of-goods/|title=China tariffs: The complete list of 128 affected good class of goods—Quartz|last=Merelli|first=Annalisa|website=Quartz|date=April 2, 2018 |language=en-US|access-date=April 3, 2018|archive-date=April 2, 2018|archive-url=https://web.archive.org/web/20180402224717/https://qz.com/1242652/china-tariffs-the-complete-list-of-128-affected-good-class-of-goods/|url-status=live}}{{Cite web|url=https://www.theguardian.com/world/2018/apr/02/china-retaliates-against-trump-tariffs-by-targeting-us-food-imports|title=China retaliates against Trump tariffs with levy on US food imports|last=Kuo|first=Lily|date=April 2, 2018|website=The Guardian|language=en|access-date=April 3, 2018|archive-date=April 3, 2018|archive-url=https://web.archive.org/web/20180403005525/https://www.theguardian.com/world/2018/apr/02/china-retaliates-against-trump-tariffs-by-targeting-us-food-imports|url-status=live}}
On April 3, 2018, the U.S. Trade Representative's office published an initial list of 1,300+ Chinese goods to impose levies upon, including products like flat-screen televisions, weapons, satellites, medical devices, aircraft parts and batteries.{{Cite news|url=http://www.straitstimes.com/asia/east-asia/us-publishes-list-of-1300-chinese-goods-to-be-targeted-by-tariffs|title=US publishes list of 1,300 Chinese goods worth US$50b set to be targeted by tariffs|last=hermesauto|date=April 4, 2018|work=The Straits Times|access-date=April 4, 2018|language=en|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404041901/http://www.straitstimes.com/asia/east-asia/us-publishes-list-of-1300-chinese-goods-to-be-targeted-by-tariffs|url-status=live}}{{Cite news|url=https://www.nytimes.com/2018/04/03/us/politics/white-house-chinese-imports-tariffs.html|title=White House Unveils Tariffs on 1,300 Chinese Products|last=Swanson|first=Ana|date=April 3, 2018|work=The New York Times|access-date=April 4, 2018|language=en-US|issn=0362-4331|archive-date=August 18, 2019|archive-url=https://web.archive.org/web/20190818131259/https://www.nytimes.com/2018/04/03/us/politics/white-house-chinese-imports-tariffs.html|url-status=live}}{{Cite web|url=https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf|title=Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation|author=Office of the United States Trade Representative|date=April 3, 2018|website=ustr.gov|access-date=April 4, 2018|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404005515/https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf|url-status=live}} Chinese Ambassador Cui Tiankai responded by warning the U.S. that they may fight back, saying "We have done the utmost to avoid this kind of situation, but if the other side makes the wrong choice, then we have no alternative but to fight back."{{cite news|url=https://www.cnbc.com/2018/04/03/chinese-ambassador-to-us-we-will-take-measures-to-fight-back-very-soon.html|title=China's ambassador to the US explains why the country is striking back|first1=Huileng|last1=Tan|first2=Seema|last2=Mody|date=April 4, 2018|publisher=CNBC|access-date=May 12, 2019|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200911/https://www.cnbc.com/2018/04/03/chinese-ambassador-to-us-we-will-take-measures-to-fight-back-very-soon.html|url-status=live}}
On April 4, 2018, China's Customs Tariff Commission of the State Council decided to announce a plan of additional tariffs of 25% on 106 items of products including automobiles, airplanes, and soybeans.{{Cite web|url=http://www.xinhuanet.com/english/2018-04/04/c_137088112.htm|title=China imposes additional tariffs on U.S. products worth 50 bln USD|agency=Xinhua News Agency|access-date=April 4, 2018|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404103231/http://www.xinhuanet.com/english/2018-04/04/c_137088112.htm|url-status=dead}} Soybeans are the top U.S. agricultural export to China.{{Cite news|url=https://www.bloomberg.com/news/articles/2018-04-04/as-china-fires-back-in-trade-war-here-are-the-winners-and-losers|title=As China Fires Back in Trade War, Here Are the Winners And Losers|date=April 4, 2018|work=Bloomberg.com|access-date=April 4, 2018|language=en|archive-date=July 12, 2019|archive-url=https://web.archive.org/web/20190712141023/https://www.bloomberg.com/news/articles/2018-04-04/as-china-fires-back-in-trade-war-here-are-the-winners-and-losers|url-status=live}}{{Cite news|url=https://www.washingtonpost.com/world/asia_pacific/china-fires-back-at-trump-with-tariffs-on-106-us-products-including-soybeans-cars/2018/04/04/338134f4-37d8-11e8-b57c-9445cc4dfa5e_story.html|title=China fires back at Trump with the threat of tariffs on 106 U.S. products, including soybeans|last=Rauhala|first=Emily|date=April 4, 2018|newspaper=The Washington Post|access-date=April 4, 2018|language=en-US|issn=0190-8286|archive-date=July 12, 2019|archive-url=https://web.archive.org/web/20190712110056/https://www.washingtonpost.com/world/asia_pacific/china-fires-back-at-trump-with-tariffs-on-106-us-products-including-soybeans-cars/2018/04/04/338134f4-37d8-11e8-b57c-9445cc4dfa5e_story.html|url-status=live}}
The increased tit-for-tat tariff announcements stoked fears that the two countries are inching closer to a trade war.{{Cite news|url=https://www.cnn.com/2018/04/04/politics/trump-no-trade-war-china/index.html|title=Trump pushes back against market fears of trade war|author1=Maegan Vazquez|author2=Abby Phillip|publisher=CNN|access-date=April 4, 2018|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404212002/https://www.cnn.com/2018/04/04/politics/trump-no-trade-war-china/index.html|url-status=live}}{{Cite news|url=https://www.forbes.com/sites/johntobey/2018/04/04/the-trade-war-is-here-prepare-for-a-bear-market/|title=The Trade War Is Here—Prepare For A Bear Market|last=Tobey|first=John S.|work=Forbes|access-date=April 4, 2018|language=en|archive-date=April 5, 2018|archive-url=https://web.archive.org/web/20180405030220/https://www.forbes.com/sites/johntobey/2018/04/04/the-trade-war-is-here-prepare-for-a-bear-market/|url-status=live}}{{Cite news|url=https://www.washingtonpost.com/news/worldviews/wp/2018/04/04/how-trade-wars-end-and-why-trumps-will-be-different/|title=Analysis {{!}} How trade wars end and why Trump's will be different|last=Noack|first=Rick|date=April 4, 2018|newspaper=The Washington Post|access-date=April 4, 2018|language=en-US|issn=0190-8286|archive-date=April 5, 2018|archive-url=https://web.archive.org/web/20180405022019/https://www.washingtonpost.com/news/worldviews/wp/2018/04/04/how-trade-wars-end-and-why-trumps-will-be-different/|url-status=live}} On April 4, 2018, President Trump responded to speculation tweeting: "We are not in a trade war with China, that war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion. We cannot let this continue!"{{Cite news|url=https://twitter.com/realDonaldTrump/status/981492087328792577|title=Donald J. Trump on Twitter|via=Twitter|access-date=April 4, 2018|language=en|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404112204/https://twitter.com/realDonaldTrump/status/981492087328792577|url-status=live}}{{Primary source inline|date=February 2024}}{{cite web|first1=Michael|last1=Sheetz|access-date=2019-08-27|title=Trump: 'We are not in a trade war with China, that war was lost many years ago'|url=https://www.cnbc.com/2018/04/04/donald-trump-we-are-not-in-a-trade-war-with-china-we-lost-that-war-many-years-ago.html|date=April 4, 2018|publisher=CNBC|archive-date=June 8, 2019|archive-url=https://web.archive.org/web/20190608202141/https://www.cnbc.com/2018/04/04/donald-trump-we-are-not-in-a-trade-war-with-china-we-lost-that-war-many-years-ago.html|url-status=live}} The next day Trump directed the USTR to consider $100 billion in additional tariffs.{{Cite news|url=https://www.cnbc.com/2018/04/05/trump-asks-us-trade-representative-to-consider-100-billion-in-additional-tariffs-on-chinese-products.html|title=Trump proposes $100 billion in additional tariffs on Chinese products|last=Aiello|first=Chloe|date=April 5, 2018|publisher=CNBC|access-date=April 6, 2018|archive-date=August 6, 2019|archive-url=https://web.archive.org/web/20190806161122/https://www.cnbc.com/2018/04/05/trump-asks-us-trade-representative-to-consider-100-billion-in-additional-tariffs-on-chinese-products.html|url-status=live}}{{Cite news|url=https://www.bloomberg.com/news/articles/2018-04-05/trump-orders-consideration-of-100-billion-in-new-china-tariffs|title=Trump Escalates Trade Tensions With Call for New China Tariffs|date=April 5, 2018|work=Bloomberg.com|access-date=April 6, 2018|language=en|archive-date=August 5, 2019|archive-url=https://web.archive.org/web/20190805215155/https://www.bloomberg.com/news/articles/2018-04-05/trump-orders-consideration-of-100-billion-in-new-china-tariffs|url-status=live}}
On May 9, 2018, China cancelled soybean orders exported from United States to China. Zhang Xiaoping, Chinese director for the U.S. Soybean Export Council, said Chinese buyers simply stopped buying from the U.S.{{cite news |title=Facing threat of tariffs, China buyers cancel orders for U.S. soybeans |url=https://www.pbs.org/newshour/world/facing-threat-of-tariffs-china-buyers-cancel-orders-for-u-s-soybeans |access-date=May 31, 2018 |work=PBS NewsHour |archive-date=May 25, 2019 |archive-url=https://web.archive.org/web/20190525232415/https://www.pbs.org/newshour/world/facing-threat-of-tariffs-china-buyers-cancel-orders-for-u-s-soybeans |url-status=live }}
On June 15, Donald Trump released a list of $34 billion of Chinese goods to face a 25% tariff, starting on July{{nbsp}}6. Another list with $16 billion of Chinese goods was released, with an implementation date of August 23.{{cite news|url=https://business.financialpost.com/pmn/business-pmn/trumps-tariffs-what-they-are-and-how-china-is-responding|title=Trump's tariffs: What they are and how China is responding—Financial Post|first=Paul|last=Wiseman|date=June 15, 2018|newspaper=Financial Post |agency=Associated Press|access-date=December 23, 2018|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200837/https://business.financialpost.com/pmn/business-pmn/trumps-tariffs-what-they-are-and-how-china-is-responding|url-status=live}}
On July 10, the United States Trade Representative, in reaction to China's retaliatory tariffs that took effect July{{nbsp}}6, requested comments, gave notice of public hearings and issued a proposed list of Chinese products amounting to an annual trade value of about $200 billion that would be subjected to an additional 10% in duties on top of what those imported articles would normally pay.{{Cite web|url=https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/july/statement-us-trade-representative|title=Statement By U.S. Trade Representative Robert Lighthizer on Section 301 Action {{!}} United States Trade Representative|website=ustr.gov|language=en|access-date=2018-07-12|archive-date=July 13, 2018|archive-url=https://web.archive.org/web/20180713015159/https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/july/statement-us-trade-representative|url-status=live}}
In 2018 China ended its domestic ownership rules for auto companies and financial institutions. The rules required that auto companies and financial institutions in China be at least 50 percent owned by Chinese companies. The change was seen as benefitting U.S. auto companies including Tesla.{{cite web|url=https://www.industryweek.com/economy/huge-break-auto-companies-china-removes-ownership-caps|title=Huge Break for Auto Companies as China Removes Ownership Caps|date=April 17, 2018|website=IndustryWeek|access-date=December 23, 2018|archive-date=December 24, 2018|archive-url=https://web.archive.org/web/20181224023715/https://www.industryweek.com/economy/huge-break-auto-companies-china-removes-ownership-caps|url-status=live}}{{cite news|url=https://www.ft.com/content/77959222-4226-11e8-803a-295c97e6fd0b|title=China makes trade concession to US by opening car industry to foreigners|last1=Clover|first1=Charles|last2=Feng|first2=Emily|author3=Sherry Fei Ju|date=April 17, 2018|access-date=May 12, 2019|work=Financial Times|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200836/https://www.ft.com/content/77959222-4226-11e8-803a-295c97e6fd0b|url-status=live}}
On May 9, 2019, Trump said the tariffs are "paid for mostly by China, by the way, not by us." Economic analysts concluded this was an incorrect assertion as American businesses and consumers ultimately pay the tariffs as real-world examples of tariffs working as intended are rare, and consumers of the tariff-levying country are the primary victims of tariffs, by having to pay higher prices. "It is inaccurate to say that countries pay tariffs on commercial and consumer goods—it is the buyers and sellers that bear the costs," said Ross Burkhart, a Boise State University political scientist. "Purchasers pay the tariff when they buy popular products. Sellers lose market share when their products get priced out of markets," Burkhart added.{{Cite web|url=https://twitter.com/realDonaldTrump/status/1068120444279103488|title=Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don't want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!|first=Donald J.|last=Trump|date=November 29, 2018|access-date=May 11, 2019|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200832/https://twitter.com/realDonaldTrump/status/1068120444279103488|url-status=live}}{{Primary source inline|date=February 2024}}{{Cite web|url=https://www.businessinsider.com/trump-who-pays-for-tariffs-trade-war-costs-2019-1|title=Trump says the Treasury is taking in 'MANY billions of dollars' from the tariffs on China. The only problem is that US companies are paying the price.|first=Bob|last=Bryan|website=Business Insider|date=January 3, 2019|access-date=May 12, 2019|archive-date=May 11, 2019|archive-url=https://web.archive.org/web/20190511233858/https://www.businessinsider.com/trump-who-pays-for-tariffs-trade-war-costs-2019-1|url-status=live}}
During the June 2019 G20 Osaka summit, China and America agreed to resume stalled trade talks, with Trump announcing he would suspend an additional $300 billion in tariffs that had been under consideration after talks failed the previous month and asserting China had agreed to buy a "tremendous amount" of American farm products, although there were no specifics or confirmation of this by China. People familiar with the negotiations later said China made no explicit commitment as Trump had described.{{Cite news|url=https://www.nytimes.com/2019/06/29/world/asia/g20-trump-xi-trade-talks.html|title=Trump and Xi Agree to Restart Trade Talks, Avoiding Escalation in Tariff War|first1=Peter|last1=Baker|first2=Keith|last2=Bradsher|date=June 29, 2019|newspaper=The New York Times|access-date=June 30, 2019|archive-date=June 30, 2019|archive-url=https://web.archive.org/web/20190630224422/https://www.nytimes.com/2019/06/29/world/asia/g20-trump-xi-trade-talks.html|url-status=live}}{{Cite news|url=https://www.nytimes.com/2019/06/30/us/politics/trump-china-trade.html|title=The U.S. and China Are Talking Trade Again. But They're Still Far Apart.|first1=Alan|last1=Rappeport|first2=Keith|last2=Bradsher|date=June 30, 2019|newspaper=The New York Times|access-date=June 30, 2019|archive-date=June 30, 2019|archive-url=https://web.archive.org/web/20190630224426/https://www.nytimes.com/2019/06/30/us/politics/trump-china-trade.html|url-status=live}}{{Cite web|url=https://www.nytimes.com/2019/07/10/us/politics/us-china-trade-war.html|title=China and U.S. Differ Over Agricultural Purchases Trump Boasted About|first1=Ana|last1=Swanson|first2=Keith|last2=Bradsher|date=July 10, 2019|newspaper=The New York Times|access-date=July 12, 2019|archive-date=July 12, 2019|archive-url=https://web.archive.org/web/20190712203003/https://www.nytimes.com/2019/07/10/us/politics/us-china-trade-war.html|url-status=live}}
=South Korean products=
{{See also|South Korea–United States relations#Economic relations}}
On March 28, 2018, the United States and South Korea announced major changes to the bilateral United States–Korea Free Trade Agreement (KORUS FTA) in response to the numerous tariffs and the proposed North Korean-United States diplomatic meeting.{{cite news|url=https://trumpwhitehouse.archives.gov/briefings-statements/president-donald-j-trump-fulfilling-promise-u-s-korea-free-trade-agreement-national-security/|title=President Donald J. Trump is Fulfilling His Promise on The U.S.–Korea Free Trade Agreement and on National Security|access-date=March 28, 2018|language=en-US|archive-date=January 20, 2021|archive-url=https://web.archive.org/web/20210120202914/https://trumpwhitehouse.archives.gov/briefings-statements/president-donald-j-trump-fulfilling-promise-u-s-korea-free-trade-agreement-national-security/|via=National Archives|publisher=White House|url-status=live}} The 25 percent tariff on South Korean trucks will be extended until 2041, adding twenty years to the current 2021 target phase out date. No South Korean auto manufacturer exports trucks to the United States. The United States exempted South Korea from its steel tariffs but imposed an import quota of about 2.68 million tons.{{cite news|url=https://www.cnbc.com/2018/03/25/us-exempts-south-korea-from-steel-tariffs.html|title=US exempts South Korea from steel tariffs, but imposes import quota|date=March 25, 2018|publisher=CNBC|access-date=March 28, 2018|archive-date=March 29, 2018|archive-url=https://web.archive.org/web/20180329054330/https://www.cnbc.com/2018/03/25/us-exempts-south-korea-from-steel-tariffs.html|url-status=live}}{{cite news|url=https://www.nytimes.com/2018/03/27/us/politics/trump-south-korea-trade-deal.html|title=Trump Secures Trade Deal With South Korea Ahead of Nuclear Talks|last1=Shear|first1=Michael D.|date=March 27, 2018|work=The New York Times|access-date=March 28, 2018|last2=Rappeport|first2=Alan|language=en-US|issn=0362-4331|archive-date=March 28, 2018|archive-url=https://web.archive.org/web/20180328034425/https://www.nytimes.com/2018/03/27/us/politics/trump-south-korea-trade-deal.html|url-status=live}} South Korea was temporarily exempted from aluminum tariffs as well, but the exemption was removed effective May 1, 2018.{{cite web|url=https://www.gpo.gov/fdsys/pkg/FR-2018-06-05/pdf/2018-12137.pdf|title=83 FR 25849—Adjusting Imports of Aluminum Into the United States|access-date=2018-09-11|archive-date=September 12, 2018|archive-url=https://web.archive.org/web/20180912022406/https://www.gpo.gov/fdsys/pkg/FR-2018-06-05/pdf/2018-12137.pdf|url-status=live}}
Retaliatory tariffs
File:Average tariff rates (France, UK, US).png
China, Canada, and the European Union responded negatively to the initial announcement (which did not mention any temporary exemptions). Canada supplies 16% of U.S. demand for steel, followed by Brazil at 13%, South Korea at 10%,see also Economy of South Korea#Trade statistics Mexico at 9%, and China at 2%.{{Cite news|url=https://www.wsj.com/articles/trump-wont-quickly-announce-new-tariffs-on-aluminum-steel-1519921704|title=Trump to Impose Steep Aluminum and Steel Tariffs|last1=Schlesinger|first1=Jacob M.|date=March 2, 2018|work=The Wall Street Journal|access-date=March 3, 2018|language=en-US|issn=0099-9660|last2=Nicholas|first2=Peter|last3=Radnofsky|first3=Louise|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302220704/https://www.wsj.com/articles/trump-wont-quickly-announce-new-tariffs-on-aluminum-steel-1519921704|url-status=live}}
=Canadian=
From 2013 to 2016, Canada was the largest source of aluminum imports to the U.S.{{Cite news|url=https://www.cnbc.com/2018/03/01/canada-european-union-pledge-countermeasures-against-us-steel-aluminum-tariffs.html|title=Canada, European Union pledge countermeasures against US steel, aluminum tariffs|last=Wang|first=Christine|date=March 1, 2018|publisher=CNBC|access-date=March 2, 2018|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302164806/https://www.cnbc.com/2018/03/01/canada-european-union-pledge-countermeasures-against-us-steel-aluminum-tariffs.html|url-status=live}}{{Cite news|url=https://www.bloomberg.com/news/articles/2018-03-01/trump-is-said-to-likely-impose-stiff-steel-aluminum-tariffs|title=Trump Expected to Announce Stiff Steel, Aluminum Tariffs|last1=Jacobs|first1=Jennifer|last2=Deaux|first2=Joe|date=March 1, 2018|work=Bloomberg.com|access-date=March 2, 2018|language=en|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302005844/https://www.bloomberg.com/news/articles/2018-03-01/trump-is-said-to-likely-impose-stiff-steel-aluminum-tariffs|url-status=live}}
Trump invoked national security grounds as justification for imposing steel and aluminum tariffs on Canada. Canadian Prime Minister Justin Trudeau said the idea "that Canada could be considered a national security risk to the United States" was "absurd" and "inconceivable" and called the tariffs "totally unacceptable". Trudeau announced $16.6 billion in retaliatory tariffs, saying "American people are not the target{{nbsp}}... We hope eventually that common sense will triumph. Unfortunately the actions taken today by the United States government do not appear headed in that direction."{{cite web |last1=Spangler |first1=Todd |title=Canadian Prime Minister Justin Trudeau slams Trump on tariffs |url=https://www.freep.com/story/money/cars/2018/05/31/justin-trudeau-says-donald-trumps-tariff-rationale-absurd/660461002/ |website=Detroit Free Press |access-date=June 1, 2018 |archive-date=March 3, 2019 |archive-url=https://web.archive.org/web/20190303220441/https://www.freep.com/story/money/cars/2018/05/31/justin-trudeau-says-donald-trumps-tariff-rationale-absurd/660461002/ |url-status=live }}
On July 1, 2018, Canada implemented retaliatory tariffs on U.S. imports. The value of the Canadian tariffs were set to match the value of the U.S. tariffs dollar-for-dollar and cover 299 U.S. goods, including steel, aluminum, and a variety of other products, including inflatable boats, yogurt, whiskies, candles, and sleeping bags before the tariffs were lifted on May 20, 2019.
{{See also|2024–2025 proposals for Canadian annexation to the United States}}
=Chinese=
{{main|China–United States trade war}}
The Chinese government placed retaliatory tariffs on U.S. goods.{{cite news |title=China and the US ratchet up trade war in a day of retaliation |url=https://edition.cnn.com/2019/08/23/business/china-tariffs-trade-war/index.html |access-date=February 11, 2021 |publisher=CNN |archive-date=November 18, 2020 |archive-url=https://web.archive.org/web/20201118005907/https://edition.cnn.com/2019/08/23/business/china-tariffs-trade-war/index.html |url-status=live }}{{cite web|date=June 16, 2018|title=Australia vulnerable to 'full-blown trade war' as US-China tension deepens|url=https://www.theage.com.au/politics/federal/australia-vulnerable-to-full-blown-trade-war-as-us-china-tension-deepens-20180616-p4zlvr.html|website=The Age|access-date=June 17, 2018|archive-date=September 13, 2019|archive-url=https://web.archive.org/web/20190913070602/https://www.theage.com.au/politics/federal/australia-vulnerable-to-full-blown-trade-war-as-us-china-tension-deepens-20180616-p4zlvr.html|url-status=live}} China threatened to curb imports of U.S. soybeans.{{Cite news|url=https://www.reuters.com/article/us-usa-trade-trump/trump-says-u-s-steel-aluminum-sectors-decimated-by-unfair-trade-idUSKCN1GD4ZW|title=Trump to impose steep tariffs on steel, aluminum; stokes trade war fears|last1=Holland|first1=Steve|last2=Gibson|first2=Ginger|date=March 2, 2018|work=Reuters|access-date=May 12, 2019|archive-date=May 13, 2019|archive-url=https://web.archive.org/web/20190513200914/https://www.reuters.com/article/us-usa-trade-trump/trump-says-u-s-steel-aluminum-sectors-decimated-by-unfair-trade-idUSKCN1GD4ZW|url-status=live}}
A June 2019 analysis conducted by the Peterson Institute for International Economics found that China had imposed the same 8% average tariffs on all countries in January 2018, but by June 2019 average tariffs on American exports had increased to 20.7% while those on other countries had declined to 6.7%{{cite web|url=https://www.piie.com/research/piie-charts/china-raising-tariffs-united-states-and-lowering-them-everybody-else|title=China Is Raising Tariffs on the United States and Lowering Them for Everybody Else|date=June 24, 2019|website=PIIE|access-date=June 28, 2019|archive-date=June 28, 2019|archive-url=https://web.archive.org/web/20190628215251/https://www.piie.com/research/piie-charts/china-raising-tariffs-united-states-and-lowering-them-everybody-else|url-status=live}}
=European=
Jean-Claude Juncker, the president of the European Commission, condemned U.S. steel and aluminum tariffs and announced that a legal challenge at the World Trade Organization would follow.{{Cite press release|url=http://europa.eu/rapid/press-release_STATEMENT-18-1484_en.htm|title=European Commission responds to the US restrictions on steel and aluminium affecting the EU|publisher=European Commission|date=March 1, 2018|access-date=March 2, 2018|archive-date=March 2, 2018|archive-url=https://web.archive.org/web/20180302170757/http://europa.eu/rapid/press-release_STATEMENT-18-1484_en.htm|url-status=live}} The EU filed the WTO challenge against the United States on June 1, once the tariffs took effect.Emre Peker, [https://www.wsj.com/articles/european-union-launches-wto-challenge-to-u-s-tariffs-1527863241 European Union Launches WTO Challenge to U.S. Tariffs] {{Webarchive|url=https://web.archive.org/web/20180701030512/https://www.wsj.com/articles/european-union-launches-wto-challenge-to-u-s-tariffs-1527863241 |date=July 1, 2018 }}, Wall Street Journal (June 1, 2018).
Retaliatory tariffs from the European Union took effect on June 22, 2018, imposing tariffs on 180 types of products, in total worth over $3 billion of U.S. goods. Affected products include steel and aluminum, agricultural goods (including orange juice and cranberry juice), clothing, washing machines, cosmetics, and boats.Shannon Van Sant & Bill Chappell, [https://www.npr.org/2018/06/22/622488352/eu-tariffs-take-effect-retaliating-for-trumps-taxes-on-imported-steel-and-alumin EU Tariffs Take Effect, Retaliating For Trump's Tariffs on Steel and Aluminum] {{Webarchive|url=https://web.archive.org/web/20180623011954/https://www.npr.org/2018/06/22/622488352/eu-tariffs-take-effect-retaliating-for-trumps-taxes-on-imported-steel-and-alumin |date=June 23, 2018 }}, NPR (June 22, 2018). European Commissioner for Trade Cecilia Malmström stated: "The rules of international trade, which we have developed{{nbsp}}... with our American partners, cannot be violated without a reaction from our side. Our response is measured, proportionate and fully in line with WTO rules." Among the U.S. manufacturers affected by the EU's responsive tariffs is Harley-Davidson, which announced that it would move some of their manufacturing out of the United States.{{cite web |last1=Rappeport |first1=Alan |title=Harley-Davidson, Blaming E.U. Tariffs, Will Move Some Production Out of U.S. |url=https://nytimes.com/2018/06/25/business/harley-davidson-us-eu-tariffs.html |website=The New York Times |date=June 25, 2018 |access-date=May 12, 2019 |archive-date=May 13, 2019 |archive-url=https://web.archive.org/web/20190513201014/https://www.nytimes.com/2018/06/25/business/harley-davidson-us-eu-tariffs.html |url-status=live }} Another is the James E. Pepper whiskey distillery in Kentucky, which, due to raised prices, lost most of its foreign business; as of mid-2021, the business had not recovered.{{Cite web|last=Lobosco|first=Katie|date=June 12, 2021|title=How Trump's tariffs haunt Kentucky's whiskey distillers: 'We're still on death row'|url=https://www.cnn.com/2021/06/12/politics/tariffs-trump-biden-whiskey/index.html|access-date=2021-06-13|publisher=CNN}}
The ongoing conflict between American aircraft manufacturer Boeing and European manufacturer Airbus over government subsidies had been going on for more than two decades. After the World Trade Organization gave the U.S. a green light to impose tariffs because of subsidies from the governments of Spain, France, Germany, and the United Kingdom to Airbus, European Commission spokesperson Daniel Rosario threatened retaliatory measures if the United States imposes a US$7.5 billion (€6.823 billion) tariff on products such as olives, whiskey, wine, cheese, yogurt, and airplanes. The tariffs were in addition to those imposed in 2018. {{As of|2019|October|18|df=US}} they were in effect.{{citation|publisher=BBC|date=October 18, 2019|access-date=February 20, 2020|title=US Airbus row: European goods hit by new US tariffs|author1=N/A|url=https://www.bbc.com/news/world-europe-50095338|archive-date=October 19, 2019|archive-url=https://web.archive.org/web/20191019012524/https://www.bbc.com/news/world-europe-50095338|url-status=live}}
Under President Joe Biden, the United States embarked on an effort to settle several trade disputes with allies, including both ones originating under President Trump and longer-standing ones. The United States and the European Union announced on October 31, 2021, in a joint statement that tariffs on steel and aluminum would be lifted under a certain volume and replaced by bilateral tariff-rate quotas that would allow for historical volumes of trade. European tariffs on American metal and iconic American exports would also end and further European retaliatory tariffs that would be implemented on December 1 were forestalled. The steel and aluminum have to be entirely produced in the EU to qualify for duty-free status.U.S. Department of Commerce, [https://www.commerce.gov/news/press-releases/2021/05/joint-united-states-european-union-statement-addressing-global-steel "Joint United States – European Union Statement on Addressing Global Steel and Aluminum Excess Capacity"]. Retrieved June 1, 2022.Guardian, [https://www.theguardian.com/business/2021/oct/31/us-and-eu-reach-peace-deal-on-trump-era-tariffs-on-steel-and-aluminium "US and EU reach peace deal on Trump-era tariffs on steel and aluminium"]. Retrieved June 1, 2022.Peterson Institute for International Economics, [https://www.piie.com/blogs/trade-and-investment-policy-watch/biden-and-europe-remove-trumps-steel-and-aluminum-tariffs "Biden and Europe remove Trump's steel and aluminum tariffs, but it’s not free trade"]. Retrieved June 1, 2022.
A similar system of duty-free quotas was announced on March 22, 2022, for steel and aluminum products from the United Kingdom within historical volumes. An audit regime was agreed upon for Chinese-owned steel companies. In return British retaliatory tariffs would be lifted.U.S. Department of Commerce, [https://www.commerce.gov/news/press-releases/2022/03/raimondo-tai-statements-232-tariff-agreement-united-kingdom "Raimondo, Tai Statements on 232 Tariff Agreement with United Kingdom"]. Retrieved June 1, 2022.DW, [https://www.dw.com/en/us-to-drop-uk-steel-and-aluminum-tariffs/a-61225914 "US to drop UK steel and aluminum tariffs"]. Retrieved June 1, 2022. The United States announced a suspension for the duration of one year placed on tariffs on Ukrainian steel on May 9, 2022, in view of the Russian invasion of Ukraine.U.S. Department of Commerce, [https://www.commerce.gov/news/press-releases/2022/05/raimondo-announces-temporary-suspension-232-tariffs-ukraine-steel "Raimondo Announces Temporary Suspension of 232 Tariffs on Ukraine Steel"]. Retrieved June 1, 2022.
=Indian=
On June 16, 2019, India imposed retaliatory tariffs on 28 U.S. products, $240 million (~${{Format price|{{Inflation|index=US-GDP|value=240000000|start_year=2019}}}} in {{Inflation/year|US-GDP}}) worth of goods, with some levies reaching 70 percent. Affected products include apples, almonds, walnuts, lentils, and some chemical products; India is the largest buyer of U.S. almonds, paying $543 million for more than half of the imports. It's also the second-largest buyer of U.S. apples, buying $156 million (~${{Format price|{{Inflation|index=US-GDP|value=156000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}) worth in 2018. The tariffs were in response to the U.S.'s refusal to exempt India from higher tariffs on steel and aluminum imports and in response to the U.S. withdrawing India from the Generalized System of Preferences on June 5. India had announced retaliatory tariff increases totaling $235 million (~${{Format price|{{Inflation|index=US-GDP|value=235000000|start_year=2018}}}} in {{Inflation/year|US-GDP}}) on U.S. goods in June 2018, but trade talks had delayed their implementation.{{cite news|url=https://www.axios.com/trump-trade-war-india-imposes-tariffs-on-us-goods-19cb4b51-0117-4c4d-bfd1-8fd7192ba090.html|title=Trump trade war: India announces tariffs on U.S. products|date=June 16, 2019|work=Axios|access-date=June 17, 2019|archive-date=June 17, 2019|archive-url=https://web.archive.org/web/20190617000518/https://www.axios.com/trump-trade-war-india-imposes-tariffs-on-us-goods-19cb4b51-0117-4c4d-bfd1-8fd7192ba090.html|url-status=live}}
=Mexican=
In response to the imposition of U.S. tariffs, Mexico implemented retaliatory tariffs on around US$3 billion (MXN $58.6 billion) worth of U.S. goods. These Mexican tariffs, which went into effect on June 5, 2018, were imposed on U.S. steel, pork, cheese, whiskey, and apples, among other goods before being lifted on May 20, 2019.Ana Swanson & Jim Tankersley, [https://www.nytimes.com/2018/06/05/us/politics/trump-trade-canada-mexico-nafta.html Mexico, Hitting Back, Imposes Tariffs on $3 Billion Worth of U.S. Goods] {{Webarchive|url=https://web.archive.org/web/20180701030455/https://www.nytimes.com/2018/06/05/us/politics/trump-trade-canada-mexico-nafta.html |date=July 1, 2018 }}, New York Times (June 5, 2018).
Proposed
=Automobiles=
During his first successful presidential campaign, Trump said he would impose tariffs—between 15 and 35%—on companies that moved their operations to Mexico.{{cite web|url=https://thehill.com/policy/finance/289005-trump-suggests-leaving-wto-over-import-tax-proposal/|title=Trump suggests leaving WTO over import tax proposal|last=Needham|first=Vicki|date=July 24, 2016|access-date=July 24, 2016|archive-date=December 6, 2019|archive-url=https://web.archive.org/web/20191206084148/https://thehill.com/policy/finance/289005-trump-suggests-leaving-wto-over-import-tax-proposal|url-status=live}} Trump proposed a 35% tariff on "every car, every truck and every part manufactured in Ford's Mexico plant that comes across the border".{{Cite news|url=https://www.washingtonpost.com/opinions/trumps-contempt-for-the-free-market/2015/10/21/2f61d87c-7815-11e5-bc80-9091021aeb69_story.html|title=Donald Trump's contempt for the free market|last=Lane|first=Charles|date=October 21, 2015|newspaper=The Washington Post|access-date=March 2, 2018|language=en-US|issn=0190-8286|archive-date=June 14, 2016|archive-url=https://web.archive.org/web/20160614142029/https://www.washingtonpost.com/opinions/trumps-contempt-for-the-free-market/2015/10/21/2f61d87c-7815-11e5-bc80-9091021aeb69_story.html|url-status=live}} Tariffs at that level would be far higher than the international norms (which are around 2.67% for the U.S. and most other advanced economies and under 10% for most developing countries).{{Cite news|url=https://www.cnbc.com/2016/03/10/trump-trade-plans-could-cause-global-recession-experts.html|title=Trump trade plan is dangerous: Economists|last=Rosenfeld|first=Everett|date=March 10, 2016|publisher=CNBC|access-date=March 2, 2018|archive-date=March 3, 2018|archive-url=https://web.archive.org/web/20180303105755/https://www.cnbc.com/2016/03/10/trump-trade-plans-could-cause-global-recession-experts.html|url-status=live}} After the European Union threatened to impose retaliatory tariffs should a tariff on steel and aluminum be imposed, on March 3, 2018, Trump countered with a threat to impose tariffs on European car manufacturers.{{Cite web|url=https://twitter.com/realDonaldTrump/status/969994273121820672|title=If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a Tax on their Cars which freely pour into the U.S. They make it impossible for our cars (and more) to sell there. Big trade imbalance!|last=Trump|first=Donald J.|date=March 3, 2018|website=@realDonaldTrump|language=en|access-date=March 3, 2018|archive-date=March 3, 2018|archive-url=https://web.archive.org/web/20180303175351/https://twitter.com/realDonaldTrump/status/969994273121820672|url-status=live}}{{Primary source inline|date=February 2024}} In May 2019, Trump threatened to impose tariffs of up to 25 percent on automobiles and parts on the basis that a weakening internal U.S. economy constituted a national security threat, but delayed the imposition of the tariffs for six months to allow for trade talks with the European Union and Japan.{{Cite web|url=https://www.cnn.com/2019/05/18/politics/trump-auto-tariffs-delay/index.html|title=Trump says foreign cars are a national security threat. Will Congress stop him in before it's too late?|last=Byrd|first=Analysis by Haley|publisher=CNN|date=May 18, 2019 |access-date=2019-06-25|archive-date=June 25, 2019|archive-url=https://web.archive.org/web/20190625034117/https://www.cnn.com/2019/05/18/politics/trump-auto-tariffs-delay/index.html|url-status=live}}{{Cite news|url=https://www.reuters.com/article/us-autos-tariffs-usa-idUSKCN1SN1FY|title=Trump declares some auto imports pose national security threat|date=May 18, 2019|work=Reuters|access-date=2019-06-25|language=en|archive-date=July 11, 2019|archive-url=https://web.archive.org/web/20190711073058/https://www.reuters.com/article/us-autos-tariffs-usa-idUSKCN1SN1FY|url-status=live}}{{Cite web|url=https://www.cnbc.com/video/2018/05/27/why-the-trump-administration-is-going-after-auto-imports-asian-trade-centre.html|title=Why the Trump administration is going after auto imports: Asian Trade Centre|date=May 28, 2018 |publisher=CNBC|access-date=2019-06-25|archive-date=June 25, 2019|archive-url=https://web.archive.org/web/20190625034117/https://www.cnbc.com/video/2018/05/27/why-the-trump-administration-is-going-after-auto-imports-asian-trade-centre.html|url-status=live}}
=All Mexican imports=
On May 30, 2019, Trump unexpectedly announced that he would impose a 5% tariff on all imports from Mexico on June 10, increasing to 10% on July 1, and by another 5% each month for three months, "until such time as illegal migrants coming through Mexico, and into our Country, STOP."{{Cite news|url=https://www.nytimes.com/2019/05/30/us/politics/trump-mexico-tariffs.html |url-access=subscription |title=Trump Says U.S. Will Hit Mexico With 5% Tariffs on All Goods|first1=Annie|last1=Karni|first2=Ana|last2=Swanson|first3=Michael D.|last3=Shear|date=May 30, 2019|newspaper=The New York Times|access-date=May 31, 2019|archive-date=May 31, 2019|archive-url=https://web.archive.org/web/20190531012647/https://www.nytimes.com/2019/05/30/us/politics/trump-mexico-tariffs.html|url-status=live}} Hours later, Republican senator Chuck Grassley, chairman of the Senate Finance Committee, commented, "This is a misuse of presidential tariff authority and counter to congressional intent. Following through on this threat would seriously jeopardize passage of USMCA, a central campaign pledge of President Trump's and what could be a big victory for the country."{{Cite news|url=https://www.washingtonpost.com/immigration/trump-prepares-to-threaten-mexico-with-new-tariffs-in-attempt-to-force-migrant-crackdown/2019/05/30/0f05f01e-8314-11e9-bce7-40b4105f7ca0_story.html|title=Trump says U.S. to impose five percent tariff on all Mexican imports beginning June 10 in dramatic escalation of border clash|newspaper=The Washington Post|access-date=June 1, 2019|archive-date=June 1, 2019|archive-url=https://web.archive.org/web/20190601222633/https://www.washingtonpost.com/immigration/trump-prepares-to-threaten-mexico-with-new-tariffs-in-attempt-to-force-migrant-crackdown/2019/05/30/0f05f01e-8314-11e9-bce7-40b4105f7ca0_story.html|url-status=live}} That same day, the Trump administration formally initiated the process to seek congressional approval of USMCA.{{Cite news|url=https://www.bloomberg.com/news/articles/2019-05-30/trump-plows-ahead-with-usmca-approval-plan-as-democrats-waver|title=Trump Pushes USMCA Approval Plan in Move That Irks Pelosi|newspaper=Bloomberg.com|date=May 30, 2019 |access-date=December 3, 2019|archive-date=June 12, 2019|archive-url=https://web.archive.org/web/20190612232409/https://www.bloomberg.com/news/articles/2019-05-30/trump-plows-ahead-with-usmca-approval-plan-as-democrats-waver|url-status=live}}
Trump's top trade advisor, US Trade Representative Robert Lighthizer, opposed the new Mexican tariffs on concerns it would jeopardize passage of USMCA.{{Cite news|url=https://www.wsj.com/articles/trumps-top-trade-adviser-opposed-mexican-tariffs-11559320692|title=Trump's Threat of Tariffs on Mexico Prompts Outcry|first1=Vivian|last1=Salama|first2=William|last2=Mauldin|first3=Catherine|last3=Lucey|date=June 1, 2019|newspaper=The New York Times|access-date=June 1, 2019|archive-date=June 1, 2019|archive-url=https://web.archive.org/web/20190601210001/https://www.wsj.com/articles/trumps-top-trade-adviser-opposed-mexican-tariffs-11559320692|url-status=live}} Treasury secretary Steven Mnuchin and Trump senior advisor Jared Kushner also opposed the action. Grassley, whose committee is instrumental in passing USMCA, was not informed in advance of Trump's surprise announcement.{{Cite news |last1=Kim |first1=Seung Min |last2=Dawsey |first2=Josh |last3=Paletta |first3=Damian |date=May 31, 2019 |title=Trump defies close advisers in deciding to threaten Mexico with disruptive tariffs |url=https://www.washingtonpost.com/politics/trump-defies-close-advisers-in-deciding-to-threaten-mexico-with-disruptive-tariffs/2019/05/31/d87ae82c-83ba-11e9-bce7-40b4105f7ca0_story.html |url-status=live |archive-url=https://web.archive.org/web/20190601173101/https://www.washingtonpost.com/politics/trump-defies-close-advisers-in-deciding-to-threaten-mexico-with-disruptive-tariffs/2019/05/31/d87ae82c-83ba-11e9-bce7-40b4105f7ca0_story.html |archive-date=June 1, 2019 |access-date=June 1, 2019 |newspaper=The Washington Post}} An array of lawmakers and business groups expressed consternation about the proposed tariffs.{{Cite web|url=https://www.nytimes.com/2019/05/31/business/mexico-tariffs-donald-trump.html|title=Trump's Tariff Threat Sends Mexico, Lawmakers and Businesses Scrambling|first=Ana|last=Swanson|date=May 31, 2019|newspaper=The New York Times|access-date=June 1, 2019|archive-date=June 1, 2019|archive-url=https://web.archive.org/web/20190601220245/https://www.nytimes.com/2019/05/31/business/mexico-tariffs-donald-trump.html|url-status=live}} With 2018 imports of Mexican goods totaling $346.5 billion, a 5% tariff constitutes a tax increase of over $17 billion.
On the evening of June{{nbsp}}7, Trump announced that the planned Mexico tariffs were "indefinitely suspended" after Mexico agreed to take stronger measures to curb immigration across the border of the U.S. According to the deal, Mexico agreed to deploy 6,000 of its National Guard troops throughout the country, with a focus on its southern border with Guatemala. Mexico also agreed to house migrants seeking asylum in the U.S.—including housing, offering jobs, health care and education—while the U.S. agreed to accelerate asylum claims. If the deal does not have the "expected results", then the two nations will meet again in 90 days. Trump also tweeted that Mexico had agreed to "immediately" begin buying agricultural products from U.S. farmers, although the communique between the countries did not mention any such deal and Mexican officials were reportedly not aware of such discussions; American officials declined to comment.{{cite web|url=https://www.bloomberg.com/news/articles/2019-06-08/mexico-never-agreed-to-farm-deal-with-u-s-contradicting-trump|title=Mexico Never Agreed to Farm Deal With U.S., Contradicting Trump|date=June 7, 2019|publisher=Bloomberg News|access-date=June 8, 2019|archive-date=June 8, 2019|archive-url=https://web.archive.org/web/20190608223220/https://www.bloomberg.com/news/articles/2019-06-08/mexico-never-agreed-to-farm-deal-with-u-s-contradicting-trump|url-status=live}}
The New York Times reported the next day that Mexico had already agreed to most of the actions months prior.{{cite news|url=https://www.nytimes.com/2019/06/08/us/politics/trump-mexico-deal-tariffs.html|title=Mexico Agreed to Take Border Actions Months Before Trump Announced Tariff Deal|first1=Michael D.|last1=Shear|first2=Maggie|last2=Haberman|date=June 8, 2019|newspaper=The New York Times|access-date=June 8, 2019|archive-date=June 8, 2019|archive-url=https://web.archive.org/web/20190608220836/https://www.nytimes.com/2019/06/08/us/politics/trump-mexico-deal-tariffs.html|url-status=live}} On June 9, as critics continued to downplay the significance of the deal, Trump called The New York Times report "false", tweeting "We have been trying to get some of these Border Actions for a long time{{nbsp}}... but were not able to get them, or get them in full, until our signed agreement with Mexico." The Times stood by its reporting.{{cite web|url=https://www.nytimes.com/2019/06/09/us/politics/trump-times-article-mexico.html|title=Trump, Attacking Times Article, Claims Mexico Deal Has Secret Provisions|first=Peter|last=Baker|date=June 9, 2019|newspaper=The New York Times|access-date=June 9, 2019|archive-date=June 9, 2019|archive-url=https://web.archive.org/web/20190609215836/https://www.nytimes.com/2019/06/09/us/politics/trump-times-article-mexico.html|url-status=live}} Trump also threatened that he could return to using tariffs as a tactic if desired. Mexico's ambassador to the U.S., Martha Bárcena Coqui, addressed Trump's defense of the deal on CBS, saying "There are a lot of details that we discussed during the negotiations{{nbsp}}... that we didn't put into the declaration because there are different paths that we have to follow," adding that adjustments will be made as the situation on the border evolves.{{cite news|url=https://www.politico.com/story/2019/06/09/trump-mexico-deal-twitter-1358158|title=Trump says there's more in Mexico deal but doesn't say what|work=Politico|date=June 9, 2019|access-date=June 9, 2019|archive-date=June 9, 2019|archive-url=https://web.archive.org/web/20190609170417/https://www.politico.com/story/2019/06/09/trump-mexico-deal-twitter-1358158|url-status=live}}
Effects
The Trump administration's tariffs were panned by the majority of economists and analysts, with general consensus among experts—including U.S. Director of the National Economic Council Larry Kudlow—being that the tariffs either had no direct benefits on the U.S. economy and GDP growth or they had a small to moderately negative impact on the economy.{{cite news|url=https://www.politifact.com/truth-o-meter/statements/2019/may/14/donald-trump/does-china-mostly-pay-us-tariffs-rather-us-consume/|date=May 14, 2019|access-date=May 18, 2019|title=Who pays for US tariffs on Chinese goods? You do|work=Politifact|archive-date=May 18, 2019|archive-url=https://web.archive.org/web/20190518133007/https://www.politifact.com/truth-o-meter/statements/2019/may/14/donald-trump/does-china-mostly-pay-us-tariffs-rather-us-consume/|url-status=live}}{{Cite web|url=https://www.factcheck.org/2019/05/economists-tariffs-not-boosting-gdp/|title=Economists: Tariffs Not Boosting GDP|first=Robert|last=Farley|date=May 14, 2019|work=FactCheck.org|publisher=Annenberg Public Policy Center|access-date=May 18, 2019|archive-date=May 16, 2019|archive-url=https://web.archive.org/web/20190516115219/https://www.factcheck.org/2019/05/economists-tariffs-not-boosting-gdp/|url-status=live}}Congressional Research Service, Trump Administration Tariff Actions: Frequently Asked Questions, February 2019: https://fas.org/sgp/crs/row/R45529.pdf {{Webarchive|url=https://web.archive.org/web/20191216081714/https://fas.org/sgp/crs/row/R45529.pdf |date=December 16, 2019 }} In a March 2018 Reuters survey, almost 80% of 60 economists believed the tariffs on steel and aluminum imports would be a net harm to the U.S. economy, with the rest believing the tariffs would have little or no effect; none of the economists surveyed believed the tariffs would benefit the U.S. economy.{{Cite news|first=Shrutee|last=Sarkar|title=Economists united: Trump tariffs won't help the economy|work=Reuters|date=March 13, 2018|url=https://www.reuters.com/article/us-usa-economy-poll/economists-united-trump-tariffs-wont-help-the-economy-idUSKCN1GQ02G|access-date=March 14, 2018|archive-date=March 14, 2018|archive-url=https://web.archive.org/web/20180314031620/https://www.reuters.com/article/us-usa-economy-poll/economists-united-trump-tariffs-wont-help-the-economy-idUSKCN1GQ02G|url-status=live}} In May 2018, more than 1,000 economists wrote a letter warning Trump about the dangers of pursuing a trade war, arguing that the tariffs were echoing historical policy errors, such as the Smoot–Hawley Tariff Act, which helped lead to the Great Depression.{{cite news|url=https://www.theguardian.com/us-news/2018/may/03/donald-trump-trade-economists-warning-great-depression|title=More than 1,000 economists warn Trump his trade views echo 1930s errors|first=Dominic|last=Rushe|date=May 3, 2018|newspaper=The Guardian|access-date=May 31, 2019|archive-date=May 31, 2019|archive-url=https://web.archive.org/web/20190531170924/https://www.theguardian.com/us-news/2018/may/03/donald-trump-trade-economists-warning-great-depression|url-status=live}}
=Economic=
Many companies passed the costs of the Trump tariffs on to consumers in the form of higher prices.{{Cite book |last1=Ma |first1=Xinru |title=Beyond Power Transitions: The Lessons of East Asian History and the Future of U.S.-China Relations |last2=Kang |first2=David C. |date=2024 |publisher=Columbia University Press |isbn=978-0-231-55597-5 |series=Columbia Studies in International Order and Politics |location=New York}}{{Rp|page=180}} Following impositions of the tariffs on Chinese goods, the prices of U.S. intermediate goods rose by 10% to 30%, an amount generally equivalent to the size of the tariffs.{{Cite book |last=Jin |first=Keyu |title=The New China Playbook: Beyond Socialism and Capitalism |date=2023 |publisher=Viking |isbn=978-1-9848-7828-1 |location=New York |author-link=Keyu Jin}}{{Rp|pages=233–234}}
A study published in fall 2019 in the Journal of Economic Perspectives found that by December 2018, Trump's tariffs resulted in a reduction in aggregate U.S. real income of $1.4 billion per month in deadweight losses, and cost U.S. consumers an additional $3.2 billion per month in added tax.{{cite journal|last1=Amiti |first1=Mary |author-link1=Mary Amiti |last2=Redding |first2=Stephen J. |author-link2=Stephen Redding |last3=Weinstein |first3=David E. |author-link3=David E. Weinstein |volume=33|issue=Fall 2019|title=The Impact of the 2018 Tariffs on Prices and Welfare|journal=Journal of Economic Perspectives|pages=187–210|doi=10.1257/jep.33.4.187 |year=2019 |doi-access=free }} The study's authors noted that these were conservative measures of the losses from the tariffs, because they did not take account of the tariffs' effects in reducing the variety of products available to consumers, or the tariff-related costs attributable to policy uncertainty or the fixed costs incurred by companies to reorganize their global supply chains. A study by Federal Reserve Board economists found that the tariffs reduced employment in the American manufacturing sector.{{Cite news|url=https://www.marketwatch.com/story/fed-study-finds-trump-tariffs-backfired-2019-12-27|title=Fed study finds Trump tariffs backfired|first=Greg|last=Robb|website=MarketWatch|access-date=December 28, 2019|archive-date=December 28, 2019|archive-url=https://web.archive.org/web/20191228211831/https://www.marketwatch.com/story/fed-study-finds-trump-tariffs-backfired-2019-12-27|url-status=live}}{{Cite web|url=https://www.federalreserve.gov/econres/feds/files/2019086pap.pdf|title=Disentangling the Effects of the 2018–2019 Tariffs on a Globally Connected U.S. Manufacturing Sector|year=2019|access-date=December 27, 2019|archive-date=December 27, 2019|archive-url=https://web.archive.org/web/20191227102819/https://www.federalreserve.gov/econres/feds/files/2019086pap.pdf|url-status=live}}
An April 2019 working paper by economists found that the tariffs on washing machines caused the prices of washers to increase by approximately twelve percent in the United States.{{Cite journal|last1=Flaaen|first1=Aaron B|last2=Hortaçsu|first2=Ali|author-link2=Ali Hortaçsu|last3=Tintelnot|first3=Felix|year=2019|title=The Production Relocation and Price Effects of U.S. Trade Policy: The Case of Washing Machines|id=Working Paper 25767|url=http://www.nber.org/papers/w25767|journal=NBER Working Paper Series|series=Working Paper Series |doi=10.3386/w25767|doi-access=free|access-date=April 25, 2019|archive-date=December 31, 2019|archive-url=https://web.archive.org/web/20191231044419/https://www.nber.org/papers/w25767|url-status=live}} A 2019 paper by Federal Reserve Board economists found that the steel tariffs led to 0.6% fewer jobs in the manufacturing sector than would have happened in the absence of the tariffs; this amounted to approximately 75,000 jobs.{{Cite web|url=https://econofact.org/steel-tariffs-and-u-s-jobs-revisited|title=Steel Tariffs and U.S. Jobs Revisited {{!}} Econofact|date=February 6, 2020|language=en-US|access-date=2020-02-12|archive-date=February 8, 2020|archive-url=https://web.archive.org/web/20200208082946/https://econofact.org/steel-tariffs-and-u-s-jobs-revisited|url-status=live}}{{Cite journal|title=Disentangling the Effects of the 2018–2019 Tariffs on a Globally Connected U.S. Manufacturing Sector|year=2019|doi=10.17016/feds.2019.086|s2cid=209438792|last1=Flaaen|first1=Aaron|last2=Pierce|first2=Justin|journal=Finance and Economics Discussion Series|volume=2019|issue=86|doi-access=free}}
In May 2019, analyses from varying organizations were released. A May 2019 Goldman Sachs analysis found that the consumer price index (CPI) for tariffed goods had increased dramatically, compared to a declining CPI for all other core goods.{{Cite web|url=https://www.cnbc.com/2019/05/13/this-chart-from-goldman-sachs-shows-tariffs-are-raising-prices-for-consumers-and-it-could-get-worse.html|title=This chart from Goldman Sachs shows tariffs are raising prices for consumers and it could get worse|first=Maggie|last=Fitzgerald|date=May 13, 2019|publisher=CNBC|access-date=August 22, 2019|archive-date=August 22, 2019|archive-url=https://web.archive.org/web/20190822182515/https://www.cnbc.com/2019/05/13/this-chart-from-goldman-sachs-shows-tariffs-are-raising-prices-for-consumers-and-it-could-get-worse.html|url-status=live}} A CNBC analysis that month found that Trump had "enacted tariffs equivalent to one of the largest tax increases in decades," while Tax Foundation and Tax Policy Center analyses found the tariffs could offset the benefits of the Tax Cuts and Jobs Act of 2017 for many households. The Tax Foundation found that if all existing and proposed tariffs were fully implemented, the benefits of the Trump tax cut would be eliminated for all taxpayers through the 90th percentile in earnings.{{cite web|url=https://www.nytimes.com/2019/06/03/business/tariffs-trump-mexico-china.html|title=Trump's Tariffs Could Nullify Tax Cut, Clouding Economic Picture|first=Jim|last=Tankersley|date=June 3, 2019|newspaper=The New York Times|access-date=June 5, 2019|archive-date=June 5, 2019|archive-url=https://web.archive.org/web/20190605230215/https://www.nytimes.com/2019/06/03/business/tariffs-trump-mexico-china.html|url-status=live}}
Another May 2019 analysis conducted by the National Taxpayers Union warned that the existing and proposed additional tariffs, if fully implemented, would constitute the largest tax increase of the post-war era.{{cite web|url=https://www.ntu.org/foundation/detail/the-escalating-toll-of-trumps-taxes-on-trade|title=The Escalating Toll of Trump's Taxes on Trade|website=National Taxpayers Union|access-date=June 5, 2019|archive-date=June 5, 2019|archive-url=https://web.archive.org/web/20190605225515/https://www.ntu.org/foundation/detail/the-escalating-toll-of-trumps-taxes-on-trade|url-status=live}} According to an analysis by Peterson Institute for International Economics economists, American businesses and consumers paid more than $900,000 a year for each job that was created or saved as a result of the Trump administration's tariffs on steel and aluminum.{{Cite news|url=https://www.washingtonpost.com/business/2019/05/07/trumps-steel-tariffs-cost-us-consumers-every-job-created-experts-say/|title=Trump's steel tariffs cost U.S. consumers $900,000 for every job created, experts say|last=Long|first=Heather|year=2019|newspaper=The Washington Post|access-date=May 10, 2019|archive-date=May 9, 2019|archive-url=https://web.archive.org/web/20190509110758/https://www.washingtonpost.com/business/2019/05/07/trumps-steel-tariffs-cost-us-consumers-every-job-created-experts-say/|url-status=live}} The cost for each job saved as a result of the administration's tariffs on washing machines was $815,000.
Analysis conducted by Deutsche Bank estimated that Trump's trade actions had resulted in foregone American stock market capitalization of $5 trillion through May 2019.{{cite web|url=https://www.cnbc.com/2019/05/31/trumps-trade-wars-have-cost-the-stock-market-5-trillion-and-counting-deutsche-bank.html|title=Trump's trade wars have cost the stock market $5 trillion and counting: Deutsche Bank|first=Maggie|last=Fitzgerald|date=May 31, 2019|publisher=CNBC|access-date=May 31, 2019|archive-date=May 31, 2019|archive-url=https://web.archive.org/web/20190531175324/https://www.cnbc.com/2019/05/31/trumps-trade-wars-have-cost-the-stock-market-5-trillion-and-counting-deutsche-bank.html|url-status=live}}
A September 2019 Federal Reserve study found that tariffs Trump imposed through mid-2019, combined with the policy uncertainty they created, would reduce the 2020 real GDP growth rate by one percentage point.{{Cite journal|url=https://hbr.org/2019/12/what-unilateralism-means-for-the-future-of-the-u-s-economy|title=What Unilateralism Means for the Future of the U.S. Economy|first=Katheryn|last=Russ|journal=Harvard Business Review |date=December 16, 2019|via=hbr.org|access-date=January 2, 2020|archive-date=January 2, 2020|archive-url=https://web.archive.org/web/20200102002958/https://hbr.org/2019/12/what-unilateralism-means-for-the-future-of-the-u-s-economy|url-status=live}}{{Update needed|date=October 2024}}
A study by four economists published in October 2019 by the Quarterly Journal of Economics estimated that U.S. consumers and firms who buy imports lost $51 billion (0.27% of GDP) as a result of the 2018 tariffs. After accounting for increases in government tariff revenue and gains to U.S. producers, the study authors estimated the aggregate U.S. real income loss to be $7.2 billion (0.04% of GDP).{{cite journal|title=The Return to Protectionism|last1=Fajgelbaum|first1=Pablo D.|last2=Goldberg|first2=Pinelopi K.|author-link2=Pinelopi Koujianou Goldberg|date=October 2019|journal=The Quarterly Journal of Economics|volume=135|pages=1–55|last3=Kennedy|first3=Patrick J.|last4=Khandelwal|first4=Amit K.|doi=10.1093/qje/qjz036|hdl=10.1093/qje/qjz036|hdl-access=free}} The study found that "retaliatory tariffs resulted in a 9.9% decline in U.S. exports within products." The study also found that workers in heavily Republican counties suffered the most from the trade war, because retaliatory tariffs focused on agricultural products.
Between the time Trump took office in 2017 through March 2019, the U.S.'s trade deficit grew by $119 billion, reaching $621 billion, the highest it had been since 2008.{{cite web|url=https://www.npr.org/2019/03/06/700650144/despite-trumps-promises-the-trade-deficit-is-only-getting-wider|title=Despite Trump's Promises, The Trade Deficit Is Only Getting Wider|last=Zarroli|first=Jim|date=March 6, 2019|publisher=NPR|access-date=March 6, 2019|archive-date=March 6, 2019|archive-url=https://web.archive.org/web/20190306205309/https://www.npr.org/2019/03/06/700650144/despite-trumps-promises-the-trade-deficit-is-only-getting-wider|url-status=live}} As of January 2020, the Trump administration had imposed tariffs on 16.8% of all goods imported into the U.S. (measured as a share of the value of all U.S. imports in 2017).{{Cite web|url=https://www.cbo.gov/publication/56073|title=The Budget and Economic Outlook: 2020 to 2030|publisher=Congressional Budget Office|date=January 2020|access-date=May 21, 2020|archive-date=May 24, 2020|archive-url=https://web.archive.org/web/20200524062649/https://www.cbo.gov/publication/56073|url-status=live}} The Congressional Budget Office (CBO) published its estimate of the U.S. economic impact from Trump's trade policies:
{{blockquote|In CBO's estimation, the trade barriers put in place by the United States and its trading partners between January 2018 and January 2020 would reduce real GDP over the projection period. The effects of those barriers on trade flows, prices, and output are projected to peak during the first half of 2020 and then begin to subside. Tariffs are expected to reduce the level of real GDP by roughly 0.5 percent and raise consumer prices by 0.5 percent in 2020. As a result, tariffs are also projected to reduce average real household income by $1,277 (in 2019 dollars) in 2020. CBO expects the effect of trade barriers on output and prices to diminish over time as businesses continue to adjust their supply chains in response to the changes in the international trading environment.}}A 2021 study by Oxford Economics and the U.S.-China Business Council concluded that the United States lost 245,000 jobs as a result of the Trump tariffs.{{Rp|page=180}}
According to the Budget Lab at Yale University, American consumer prices could rise by 1.4% to 5.1% if Trump implements his comprehensive tariff plan, which would amount to an additional $1,900 to $7,600 per household.{{cite news |title=Americans stocking up on foreign goods before Trump tariffs: 'a sense of urgency' |url=https://www.theguardian.com/business/2025/jan/11/foreign-goods-trump-tariffs |agency=The Guardian |date=11 Jan 2025}}
== Effects on China–U.S. trade ==
Trump announced on August 1, 2019, that he would impose a 10% tariff on $300 billion of Chinese imports beginning September{{nbsp}}1; four days later the Chinese Commerce Ministry announced that China was halting imports of all American agricultural goods. American Farm Bureau Federation data showed that agriculture exports to China fell from $19.5 billion in 2017 to $9.1 billion in 2018, a 53% decline.{{Cite web |date=August 5, 2019 |title=U.S. farmers suffer 'body blow' as China slams door on farm purchases |url=https://www.reuters.com/article/us-usa-trade-china-agriculture-idUSKCN1UV0XJ |url-status=live |archive-url=https://web.archive.org/web/20190814184418/https://www.reuters.com/article/us-usa-trade-china-agriculture-idUSKCN1UV0XJ |archive-date=August 14, 2019 |access-date=August 14, 2019 |work=Reuters}} The figure was $21.4 billion (~${{Format price|{{Inflation|index=US-GDP|value=21400000000|start_year=2016}}}} in {{Inflation/year|US-GDP}}) in 2016.{{Cite web |title=Infographic: U.S. Agricultural Exports to China, 2016 |date=May 11, 2017 |url=https://www.fas.usda.gov/data/infographic-us-agricultural-exports-china-2016 |url-status=live |archive-url=https://web.archive.org/web/20190814184421/https://www.fas.usda.gov/data/infographic-us-agricultural-exports-china-2016 |archive-date=August 14, 2019 |access-date=August 14, 2019 |publisher=Foreign Agricultural Service, United States Department of Agriculture}}
A study by Samantha Vortherms and Jiakun Jack Zhang concluded that less than 1% of the increase in U.S. enterprises leaving China in 2018 and 2019 resulted from the tariffs and that U.S. enterprises were no more likely to divest from China than they were to divest from other Asian countries or Europe.{{Rp|page=180}}
The Trump tariffs, along with the impacts of COVID-19, were a major factor in declining trade between China and the U.S. in 2019 and 2020.{{Cite book |last=Roach |first=Stephen S. |url= |title=Accidental Conflict: America, China, and the Clash of False Narratives |date=2022 |publisher=Yale University Press |isbn=978-0-300-26901-7 |location=New Haven |oclc=1347023475 |author-link=Stephen S. Roach}}{{Rp|page=142}} Trade between the two countries subsequently rebounded significantly, and as of 2021 merchandise trade was down only marginally from its record high in 2018.{{Rp|page=142}}
In 2021, a survey of U.S. enterprises operating in China showed that two-thirds of them were optimistic about the Chinese market and planned to increase their investments in China.{{Rp|page=180}}
=Political=
Studies have found that the tariffs adversely affected Republican candidates in elections.{{Cite journal|last1=Blanchard|first1=Emily J|last2=Bown|first2=Chad P|last3=Chor|first3=Davin|year=2019|title=Did Trump's Trade War Impact the 2018 Election?|id=Working Paper 26434|url=http://www.nber.org/papers/w26434|journal=NBER Working Paper Series|series=Working Paper Series |doi=10.3386/w26434 |s2cid=207992615 |access-date=November 22, 2019|archive-date=November 11, 2020|archive-url=https://web.archive.org/web/20201111212948/https://www.nber.org/papers/w26434|url-status=live}} A study by the University of Warwick's economists found that the tariffs negatively impacted the electorate in districts that swung to Trump (relative to Mitt Romney's 2012 performance), and that as a result of the retaliatory tariffs, Republican candidates fared worse by between 1.4 and 2.7 percentage points in counties in the top decile of the exposure distribution implied by the Chinese, Canadian and Mexican retaliation.{{Cite news|url=https://www.economist.com/graphic-detail/2019/04/27/why-you-should-never-start-a-trade-war-with-an-autocracy|title=Why you should never start a trade war with an autocracy|date=April 27, 2019|newspaper=The Economist|access-date=2019-04-28|issn=0013-0613|archive-date=April 27, 2019|archive-url=https://web.archive.org/web/20190427210025/https://www.economist.com/graphic-detail/2019/04/27/why-you-should-never-start-a-trade-war-with-an-autocracy|url-status=live}}{{Cite web|url=https://voxeu.org/article/tariffs-and-politics|title=Tariffs and politics: Evidence from Trump's trade wars|last1=Fetzer|first1=Thiemo|last2=Schwarz|first2=Carlo|date=April 23, 2019|website=VoxEU.org|access-date=2019-04-28|archive-date=April 23, 2019|archive-url=https://web.archive.org/web/20190423030124/https://voxeu.org/article/tariffs-and-politics|url-status=live}}{{Cite journal|last1=Schwarz|first1=Carlo|last2=Fetzer|first2=Thiemo|date=March 8, 2019|title=Tariffs and Politics: Evidence from Trump's Trade Wars|language=en|journal=Social Science Research Network|ssrn=3349000}} The analysis also found that the retaliatory tariffs implemented by the EU were carefully structured so as to not harm the EU itself, whereas China implemented tariffs that harmed industries both in China and in the U.S. A 2021 study found that Chinese retaliatory tariffs systematically targeted Republican counties in swing congressional districts, and that voters in such counties became more aware of the trade war, its adverse impact, and that they assigned Republicans responsibility for escalating the trade dispute.{{Cite journal|last1=Kim|first1=Sung Eun|last2=Margalit|first2=Yotam|year=2021|title=Tariffs As Electoral Weapons: The Political Geography of the US–China Trade War|journal=International Organization|language=en|volume=75|pages=1–38|doi=10.1017/S0020818320000612|s2cid=232050621|issn=0020-8183|doi-access=free}}
The Asian Trade Centre argued that Trump's usage of trade policy as a tactic to push non-trade related political initiatives, particularly his May 2019 threat to levy Mexican imports until they crackdown on illegal immigration, set a negative precedent for future U.S. presidents and damaged the credibility of the U.S. as a reliable trade partner.{{Cite web|url=http://www.asiantradecentre.org/talkingtrade/mexico-solved-not-so-fastsignificant-damage-remains|title=Mexico Solved? Not So Fast{{nbsp}}... Significant Damage Remains|website=Asian Trade Centre|date=June 10, 2019 |language=en-US|access-date=2019-06-21|archive-date=June 21, 2019|archive-url=https://web.archive.org/web/20190621025411/http://www.asiantradecentre.org/talkingtrade/mexico-solved-not-so-fastsignificant-damage-remains|url-status=live}}
Successive Trump tariffs
{{Main|Tariffs in the second Trump administration}}
During his 2024 campaign, Trump repeatedly talked about imposing tariffs.{{cite news|title=Trump's inflation bomb: How his second-term plans could make it worse|url=https://www.axios.com/2024/05/08/trump-biden-2024-economy-inflation|work=Axios|date=May 8, 2024}} After he won the 2024 United States presidential election, many companies responded by preparing for the possible tariffs.{{Cite web|url=https://www.cnbc.com/2024/11/12/trump-tariffs-companies-scramble-lobbyist-loopholes.html|title=Everyone is calling': Trump's tariff threats send U.S. companies scrambling for lobbyists and loopholes|website=CNBC|date=November 12, 2024}}
In late November 2024, Trump pledged to impose a 25% tariff on Canada and Mexico, citing drug trafficking and "Illegal Aliens", as well as a 10% tariff on Chinese goods by February 20th.{{cite web |title=Trump ups the ante on tariffs, vowing massive taxes on goods from Mexico, Canada and China on Day 1 |url=https://www.cnn.com/2024/11/25/politics/trump-tariffs-mexico-canada-china/index.html |website=CNN News |access-date=30 November 2024}}
Mexico President Claudia Sheinbaum stated that the tariffs would not solve problems with immigration. According to a spokesperson for the Chinese embassy, trade with China is mutually beneficial, and that they have taken action on issues before.{{cite web |title='No-one will win' - Canada, Mexico and China respond to Trump tariff threats |url=https://www.bbc.com/news/articles/cj6kj2752jlo |website=BBC News |access-date=30 November 2024}}
On November 30, 2024, Trump suggested implementing 100% tariffs on BRICS nations if they try to compete with the U.S. dollar.{{Cite news|url=https://www.washingtonpost.com/politics/2024/11/29/trudeau-trump-tariffs/|title=Trump threatens tariffs on BRICS nations, demanding they use dollar|newspaper=Washington Post|date=November 30, 2024}}
= Canada =
After Trump won the 2024 election, he announced a plan to impose a 25% tariff on all imports from Canada as soon as he took office. This decision poses significant risks to the deep economic ties between the U.S. and Canada, where goods worth $3.6 billion cross the border daily. Trump's aim with the tariffs is to push Canada and Mexico to take stronger actions against migration and drug trafficking, while also supporting his "Buy American" agenda to boost the U.S. economy. If implemented, these tariffs could drastically alter North America's economic landscape.{{cite web | title=Expert explainer: Trump's 25% tariff threat | website=Western News | date=January 13, 2025 | url=https://news.westernu.ca/2025/01/expert-explainer-trumps-25-tariff-threat/ | access-date=January 14, 2025}}
Canadian Prime Minister Justin Trudeau stated he would retaliate against any tariffs on Canadian goods,{{cite web |title=How Canada can hit the U.S. where it hurts in fight against Trump's tariffs |url=https://www.cbc.ca/news/canada/tariff-canada-retaliate-trump-1.7394432 |website=CBC News |access-date=30 November 2024}}{{Cite web |last=Gillies |first=Rob |title=Trudeau says Americans are realizing Trump's tariffs on Canada would make life a lot more expensive |url=https://abcnews.go.com/US/wireStory/trudeau-americans-realizing-trumps-tariffs-canada-make-life-116621582 |access-date=2024-12-12 |website=ABC News |language=en}} while Ontario Premier Doug Ford threatened to cut electricity exports to the US.{{Cite news |last=Tasker |first=John Paul |date=December 12, 2024 |title='We can't just roll over': Doug Ford doubles down on threat to shut down energy exports to the U.S. |url=https://www.cbc.ca/news/politics/doug-ford-tariff-threat-energy-exports-1.7408644 |access-date=December 12, 2024 |work=CBC News}} Quebec Premier Francois Legault and Alberta Premier Danielle Smith spoke against engaging in retaliatory tariffs.{{Cite news |last=Lapierre |first=Matthew |date=November 26, 2024 |title=Quebec premier calls Trump's border security concerns 'legitimate' after tariff threat |url=https://www.cbc.ca/news/canada/montreal/quebec-economy-trump-tariff-1.7393657 |access-date=December 17, 2024 |work=CBC News}}{{Cite news |date=2024-12-12 |title=Doug Ford says he speaks for Ontario as other provinces say they would not block energy exports over Trump tariff vow |url=https://www.theglobeandmail.com/canada/alberta/article-danielle-smith-doesnt-support-tariffs-alberta-oil-gas/ |access-date=2024-12-12 |work=The Globe and Mail |language=en-CA}} In December 2024, the Canadian government proposed a series of measures to improve surveillance of the Canada-U.S. border, seeking to allay Trump's concerns about illegal immigration and drug trafficking.{{Cite news |last=Tunney |first=Catharine |date=December 17, 2024 |title=Ottawa proposes 24/7 surveillance of Canada-U.S. border, new 'strike force' to stave off tariff threat |url=https://www.cbc.ca/news/politics/border-plan-leblanc-trump-1.7412456 |access-date=December 17, 2024 |work=CBC News}} The Canadian government has allocated $1.3 billion for border measures, which includes an aerial intelligence task force and a joint strike force. These measures, seen as solutions to problems that may not exist, have drawn skepticism since Trump's claims about illegal migration and fentanyl imports are exaggerated.{{cite web | last=Haggart | first=Blayne | title=Canada-U.S. history provides lessons on how Canada can deal with a hostile Donald Trump | website=The Conversation | date=January 9, 2025 | url=https://theconversation.com/canada-u-s-history-provides-lessons-on-how-canada-can-deal-with-a-hostile-donald-trump-245731 | access-date=January 14, 2025}}
Ivey Business School professor Andreas Schotter stated tariffs would likely breach the United States–Mexico–Canada Agreement (USMCA), which promotes free trade between member nations. Such tariffs would need extensive justification, likely facing legal challenges from Canada and Mexico. Trump could use the threat of tariffs to negotiate changes to the USMCA before its 2026 renewal.
See also
References
{{reflist}}
Further reading
- Daniel W. Drezner (2019) Economic Statecraft in the Age of Trump, The Washington Quarterly, 42:3, 7–24.
{{China–United States relations|state=collapsed}}
{{Donald Trump}}
{{First presidency of Donald Trump}}
{{US tax acts}}
{{Portal bar|United States}}
Category:2018 in American politics
Category:2018 in economic history
Category:2018 in international relations
Category:China–United States economic relations
Category:Economic history of the People's Republic of China
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Category:Policies of Donald Trump
Category:First Trump administration controversies