TRADE WAR
TRADE WAR
A Short- and Long-term Outlook for U.S. Producers BY CRAIG COLLINS
42
PHOTO BY JIRI REZAC
P
resident Donald Trump’s 2016 elec Canada, Mexico, and the European Union, all of tion victory was attributed in part to his whom imposed retaliatory tariffs on a variety of U.S. denouncement of other nations’ unfair goods. China was among the first to respond, with trading practices – particularly China’s – and his tariffs aimed at 128 U.S. products, including wine, pledge to do something about fruits, nuts, and pork; within weeks, them. So it surprised few when, in it had tacked an additional 25 February and March 2018, he fired percent tariff on imports of 106 U.S. the first volleys in what has become After its first tariffs on the products, including soybeans. After an escalating – and widening its first tariffs on the United States United States went into – trade war, slapping tariffs on went into effect in July, China’s list U.S. imports of solar panels and effect in July, China’s list of of taxed imports expanded by more washing machines, followed by taxed imports expanded by than 500 U.S. goods. By the fall, across-the-board tariffs on steel the United States and China were more than 500 U.S. goods. running out of imports from each and aluminum. These tariffs, along with levies other to tax, and their dispute overon foreign tech goods and other shadowed other trade negotiations consumer products, provoked countermoves from in which the United States was involved since Trump major trade partners, including China, Turkey, took office.
