Before Trump: Long American history of tariff wars with Canada and the world | News Donald Trump
After a dramatic telephone diplomacy day, the President of the United States Donald Trump agreed to stop 25 percent of tariffs on imports from Mexico and Canada, who were supposed to take effect on Tuesday.
But the break is only one month, ia 10 percent of tariffs Trump published this in Chinese imports, on top of the existing tariffs on Tuesday morning.
The threat of a comprehensive multifront in a tariff war is still banging: Before Trump withdrew, for now, to his threat, Mexico and Canada also warned that they would launch retribution In the US, if Washington continues with the president’s tariff plan. And China announced her own tariff tariffs.
Trump threats also scared global markets and pulled a condemnation from all over the world, even as he threatened to impose tariffs to the European Union and India.
But for all the chaos that Trump has released, he is not the first US president to pay tariff wars. In fact, follows the steps of a series of predecessors who tried to use tariffs as a flash to find other countries to follow Washington’s interests.
What happened in these cases? Who were the key players? And what is Trump’s explanation of a tariff imposing trial?
Why did Trump impose tariffs in Canada, China and Mexico?
Trump justified his threat by accusing three targeted countries of not doing enough to prevent the drug, especially Fentanil, to enter the United States. He also insisted that Canada and Mexico are overwhelmed by unauthorized immigrants now allowing them access to US borders. Finally, he alluded to a trade deficit they now have with each of these countries – his first three trade partners.
“The number one is the people who got into our country, so terrible and so many … number two are drugs, fentanil and everything else that entered the ground … and the number three are huge subsidies we give Canada and Mexico because of a deficit “, Trump said in an oval office on Thursday.
Trump declared a state of emergency on Saturday, referring to the International Law on the Emergency Economic Power (IEEPHA) and imposed tariffs on three countries. These tariffs took effect on Tuesday of 12:01 AM EST (05:01 GMT).
But after a phone call with Mexican President Claudija Sheinbaum and two conversations with Canadian Prime Minister Justin Trudeau, Trump agreed to put Tariffs on two neighbors for a month.
Canada and Mexico have announced that he will send 10,000 soldiers to their borders to break the unfathomable migrants trying to enter the US and stop the fentanil to go over the borders.
Still, this is a refund temporarily and does not spread to China – And on Sunday, Trump warned that Europe was his next target. “They don’t take our cars, they don’t take our farms. They take almost nothing, and we take everything from them,” he told reporters at his MAR-a-Lije Florida estate, threatening tariffs.
So how did tariff wars played in the past?
1930: Smoot-Hawley tariffs
In 1929, the stock market collapsed on Wall Street, sending shock waves through the US and the rest of the world. Great depression, a period of global economic turmoil, began, which would take a decade.
Months later, in June 1930, US President Herbert Hoover signed a Smoot-Hawley Act in the Law. The law was originally focused on the imposition of tariffs to protect US farmers by competition, but was expanded to a wide range of products and increased the tariffs to agricultural and industrial goods by about 20 percent.
The law is named after the main supporters, Republican Senator Reed Smoot of Utah and Republican representative Willis Hawley of Oregon.
Almost immediately, the law caused trade wars. Several countries, including Canada, France and Spain, have imposed retaliation of tariffs to US products. Canada stunned tariffs on 16 American products that at the time were about a third of US exports, according to an American non-profit research organization in the United States, a national bureau for economic research (NBER).
The slowdown of trade has weakened the US economy. Until 1933. US exports dropped by 61 percent. Smoot-Hawley experts often cite as a factor that has worsened the American economic crisis.
Hoover’s popularity collapsed and his offer for a re -choice did not succeed, when Democrat Franklin D Roosevelt won him in the 1932 presidential election.
In June 1934, Roosevelt signed a law on reciprocal trade agreements, which he called to bilateral trade agreements with other countries to deny the effects of Smoot-Hawley. In the law, he said “that complete and lasting domestic recovery depends partly on the revived and reinforced international trade.” Between 1934 and 1939, the Roosevelt administration negotiated the trade agreements with 19 countries.
1960 -ih: chicken war
In the 1960s, US and European nations played a rally game of chicken across the Atlantic Ocean.
During World War II, from 1939 to 1945, red meat was ran. The US government began a campaign to encourage Americans to eat fish and poultry instead. In the years that followed, the US has increased the factory breeding of chicken, which reduced the price of poultry.
The period after World War II also saw the acceleration of globalization. Europe has started buying cheap chicken from USA. As a result, European farmers were scared that there would be prices on the market, and the fast, cheap American chickens exceed the slower, more price -like European.
In 1962, members of the European Economic Community (EEC), which was later absorbed into the European Union, imposed tariffs on US chicken. France, Western Germany, Italy, Belgium, the Netherlands and Luxembourg increased their tariff to US poultry at 13.43 cents (today about $ 1.4), per kilogram of chicken.
American export poultry into Europe has dropped sharply. Between 1962 and 1963, American global chicken exports dropped about 30 percentaccording to the report of the Ministry of Agriculture of the United States.
1963. President Lyndon B Johnson imposed the retailers of tariffs to: starch potatoes, $ 25 cents (now $ 2.57) per kilogram; Brandy, $ 5 ($ 51.3 now) by gallon if over $ 9 ($ 92.4 now) is by gallon; Dexstrin, a chemical used for paper production, 3 cents (now $ 0.31) per kilogram; and car trucks worth more than $ 1,000 (now $ 10,267.7) by 25 percent.
The “chicken tax” on light trucks remains in effect. This has led to a cat and mouse game between foreign manufacturers trying to access US markets and regulators. Manufacturers have tried to build models that could fill the specifications for passenger vehicles or could be assembled in the USA. Finally, Asian car manufacturers, especially from Japan, mostly set up factories in North America.
1982: The war of wood between the US -ai Canada
Now they were convinced that she could see the tree for trees while fought against Canada over soft wood.
The root of the conflict was the fact that Canada grows and harvesting wood from public land, and the prices determined by the Government. On the other hand, now harvested a privately owned lot.
In 1982, she claimed that Canada was unjustly subsidizing her soft wood wood, which led to several circles of conflict, tariff and retribution.
The wood war continues. The Canadian woodwelt is faced with an existing 14 percent in the US, even before Trump’s threat to add 25 percent more.
Now they import almost half of their wood products from Canada, according to the observatory of economic complexity.
1987: Tariffs on Japanese cars
In 1987, President Ronald Reagan imposed $ 100 -long Tariffs on $ 300 million in Japanese imports, especially influencing cars from East Asia.
Reagan’s administration announced that these tariffs imposed as a result of transferring Tokyo to the conditions of the 1986 semiconductor trade agreement with Washington. The agreement asked Japan to open its market with exporting computer semiconductors that made the US.
Japan did not take revenge. “Hoping to prevent this issue from causing serious damage to the world free trading system, the Japanese government has decided, from this broader perspective, that it does not immediately take any retribution,” Japanese Minister of International Trade, Hajime Tamura, told the print.
Things took a peek at the Japanese economy, the value of yen appreciated and exports fell. In the 1990s, Japan fell into a recession that ended in 2002.
Before the tariff, now they had a huge trade deficit with Japan. In 1986, the deficit was about $ 55 billion. The deficit fell slightly, to less than $ 52 billion in 1988 and $ 43 billion in 1991. The deficit has since varied, and it has been growing lately. 2023 was $ 72 billion.
1993: Split Banana
In 1993, shortly after the EU formation, the block set up a banana tariff from Latin America countries to give small farmers an advantage on the market of former Caribbean and African colonies.
Now they claimed that it went against the rules of free trade. His interest? Most banana plantations in Latin America were owned by US companies whose profits were in danger.
The US has filed eight separate complaints with the World Trade Organization (WTO), an international body that oversees the trade between countries. In the first case filed in 1997, WTO ruled in favor of the US. Wto then Consistently rules EU.
While the EU said that it was lowering the tariffs, now they claimed that the FER store was not renovated. In retaliation, 100 percent of tariffs have been imposed on European products such as Scottish cashmere or French cheese. They were bananas for Brie.
The resolution began with a Banana Geneva Agreement in December 2009, and agreed on the US, EU and 10 Latin American countries. He urged the banana tariffs from Latin America countries with 148 euros per tonne to 114 euros per Toni until 2017.
In 2012, the EU signed an agreement with Latin American countries to formally end the WTO cases. Latin American countries were Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama and Venezuela.
2002: Steel War with Europe
In order to enhance the American Steel Industry, President George W Bush sets tariffs ranging from 8 to 30 percent to steel from foreign countries. Mexico and Canada were exempt from it, but it hit Europe.
Imports of steel from countries affected by Bush tariff goals on average dropped by about 28 percent in 2002, and an additional 37 percent by 2003, according to the analysis of the French research institute Center D’Etudes Prospectives et d’It d’Or Information International (CEPII). However, the US began to import more steel from countries that tariffs did not target. Generally, American steel imports increased by 3 percent in 12 months after the tariff was imposed.
These tariffs influenced the American steel industry. Some less steel companies either went bankrupt or bought them larger.
In retaliation, Europe threatened tariffs to a number of US products worth $ 2.2 billion (now about $ 3.85 billion), ranging from Orange from Florida to Harley Davidson motorcycles. For days before Europe was imposed by these tariffs, Bush raised steel tariffs in 2003.
2018: Trump’s first tariff war
Trump’s first term of office was from 2016 to 2020.
In January 2018, he introduced the tariffs to all solar panels and washing machines. Although the tariffs did not distinguish the source of these products, China is the world’s largest solar panel manufacturer. In June 2018. Trump has imposed 25 percent of tariffs from China on more than 800 products.
Between April 2018, Beijing responded with retaliation of 178.6 percent of the US cheese from the USA. These tariffs were removed in May 2018. China also imposed 25 percent of tariffs on 128 US products, including soybeans and planes.
That year, Trump also hit 25 percent of Tariffs on Steel and 10 percent of Tariff on Aluminum, from the countries of Canada, Mexico and the EU.
Like China, other targeted countries also returned.
Canada put 25 percent of tariffs and 10 percent of tariffs on a number of products coming from USA. From the summer of 2019 to 2020, the US and China have imposed more tariffs on each other, trying to negotiate their dispute. China lost its position of main trade partner USA Mexico in 2019. After the negotiations between the US -Ai China, a truce was published in January 2020.
However, Democratic President Joe Biden, who inherited a trade war when he won the 2020 elections, extended Trump’s Tariff Solar Panel 2022. In February 2023. The washing machine tariffs finally expired.
