IFRAME: //www.googletagmanager.com/ns.html?id=GTM-5SPGGR
The Balance
Trade Wars and their Effect on the Economy and You
(BUTTON) Menu (BUTTON) Search
____________________ (BUTTON) Go
____________________ (BUTTON) Go
* Investing
+ Stocks
+ 401(k) Plans
+ IRAs
+ Mutual Funds
+ View All
* Credit Cards
+ Best Credit Cards
+ Best Rewards Cards
+ Credit Card Basics
+ Using Credit Cards
+ View All
* Taxes
+ Ultimate Guide
+ How to File
+ State Taxes
+ Tax Tools & Technology
+ View All
* Banking & Loans
+ Basics
+ Best Savings Accounts
+ Loans
+ Online Banking
+ View All
visit our other sites
The Balance uses cookies to provide you with a great user experience.
By using The Balance, you accept our
use of cookies. (BUTTON) x
IFRAME: about:blank
Trade Policy
* U.S. Dollar
* NAFTA
* Trade Agreements
* Exchange Rates
US Economy and News Trade Policy
Trade Wars and their Effect on the Economy and You
Why Trade Wars Are Bad and Nobody Wins
* Share
* Pin
* Email
Trump and Xi Jinping
••• Photo by Pool/Getty Images
By Kimberly Amadeo
Updated December 07, 2019
A trade war is when a nation imposes tariffs or quotas on imports and
foreign countries retaliate with similar forms of trade protectionism.
As it escalates, a trade war reduces international trade.
A trade war starts when a nation attempts to protect its domestic
industry and create jobs. In the short run, it may work. Tariffs are
supposed to give a competitive advantage to domestic producers of that
product. Their prices would be lower by comparison. As a result, they
would receive more orders from local customers. As their businesses
grow, they would add jobs.
But in the long run, a trade war costs jobs. It depresses economic
growth for all countries involved. It also triggers inflation when
tariffs increase the prices of imports.
The 1930 Smoot-Hawley Tariff was a trade war that worsened the Great
Depression. It increased 900 import tariffs by an average of 40% to
48%.
Smoot-Hawley was designed to support U.S. farmers who had been ravaged
by the Dust Bowl. But it also raised food prices for Americans who were
already suffering from the Great Depression. Other countries retaliated
with their own tariffs. The trade war reduced international trade by
65%. It turned a recession into a depression and contributed to the
start of World War II.
Trump's Trade Wars
President Donald Trump wants to reduce the $621 billion U.S. trade
deficit. It’s been the world’s largest since 1975. Reducing the deficit
is part of Trump’s strategy to create more jobs.
Most of the U.S. deficit results from American enthusiasm for imported
consumer products and automobiles. In 2018, the United States imported
$648 billion in drugs, televisions, clothing, and other household
items. It only exported $206 billion of these consumer goods. That
alone added $442 billion to the deficit. America imported $372 billion
worth of automobiles and parts, while only exporting $159 billion. That
added another $214 billion to the trade deficit.
In early 2018, Trump said, "Trade wars are good and easy to win." He
has initiated three: a global tariff on steel, a tariff on European
autos, and tariffs on Chinese imports. After Trump’s announcement,
global stock markets tumbled in fear of a trade war between the world's
three largest economies. In late 2018, several U.S. companies formed
"Tariffs Hurt the Heartland.” They are hurt by the rising costs of
imported materials.
The Federal Reserve estimates Trump's tariffs are costing the average
American household $1,245 a year. This includes higher prices and
lost economic growth.
In August 2019, Goldman Sachs warned that the trade war could spark a
recession. It's already lowered gross domestic product by 0.6%.
Farmers suffer from retaliatory tariffs imposed by China and Europe on
their exports. In the farm belt of Illinois, Indiana, and Wisconsin,
bankruptcies have risen to their highest level in a decade. In 2017,
those states produced half of all U.S. food. Nationally, farmers’
income fell by $11.8 billion between January and March 2019. That’s the
most since 2016.
On May 23, 2019, Trump gave farmers $16 billion in aid to partially
compensate for their losses. He gave them $12 billion in 2018.
Other countries are forming trade agreements that exclude the United
States. In April 2018, the EU upgraded its agreement with Mexico,
removing almost all tariffs. In July 2018, the EU signed an agreement
with Japan that reduces or ends tariffs on almost all goods. It's the
largest bilateral trade agreement in existence, covering $152 billion
in goods.
Steel Tariffs
On March 8, 2018, Trump administration announced a 25% tariff on steel
and a 10% tariff on aluminum imports. It said that dependence on
imported metals threatens America’s ability to make weapons.
The Aerospace Industry Council said Trump's tariffs would raise the
military’s costs instead.
The U.S. Congress is the only body authorized to impose tariffs. But in
1962, it allowed the president to curb imports that threatened national
security. The World Trade Organization can't adjudicate trade
disputes that involve security.
America is the world's largest steel importer, thanks to users like
automakers. Steel importers employ 6.5 million workers compared to
147,000 workers in the U.S. steel industry. Tariffs lowered
second-quarter profits for the big three automakers. To satisfy
shareholders, they passed those costs onto consumers. Costs from
tariffs have already outweighed any benefits of Trump's tax plan.
Eight countries filed complaints with the World Trade Organization.
Six of them - Canada, India, and Mexico, the European Union, Norway,
and Switzerland - pointed out they are allies. The other two
complainants are China and Russia.
On March 26, 2018, Trump exempted South Korea, Argentina, Australia,
and Brazil from the steel tariff. South Korea agreed to double its
import quota for U.S. cars. It allowed the United States to keep its
25% tariff on pickup trucks for an additional 20 years.
After the June 11, 2018, G7 meeting, Canadian Prime Minister Justin
Trudeau said Canada would retaliate with tariffs. Mexico announced
tariffs on flat steel, lamps, and pork products.
On May 17, 2019, Trump agreed to lift the tariffs in 48 hours on steel
imports from Canada and Mexico. In return, they will prevent Chinese
steel from being shipped from their countries to the United States.
Tariffs Against Mexico
On June 4, 2019, Trump threatened to impose a 5% tariff on all imports
from Mexico effective June 10. He wants the government to reduce the
number of asylum-seekers presenting themselves at the U.S.-Mexico
border. He promised to raise the tariff to 25% if needed to force
Mexico to act.
The tariff would be in violation of NAFTA. Trump said he can override
the trade agreement by declaring a national emergency. Republicans, who
have supported the president, are threatening to oppose this latest
action.
U.S. - China Trade War Major Events Timeline
By far, the largest U.S. trade deficit by country is with China. In
2018, the U.S. trade deficit with China was $419 billion. The United
States imported $540 billion, primarily in computers, cell phones, and
apparel. Much of this is manufactured in China by U.S. companies but is
still considered imports. The U.S. companies exported $120 billion to
China. Most of this was commercial aircraft, soybeans, and autos.
In addition to reducing the trade deficit, Trump wants to limit U.S.
technology transfers to Chinese companies. China requires foreign
companies who want to sell products in China to share their trade
secrets. The administration has also asked China to stop subsidizing
the 10 industries prioritized in its "Made in China 2025" plan. These
include robotics, aerospace, and software. China also plans to be the
world's primary artificial intelligence center by 2030. China is
unlikely to agree to those demands.
The Trump administration has imposed three tariffs on a total of $250
billion in Chinese imports. The Federal Reserve estimated these tariffs
cost the average household $419 per year.
On May 20, 2019, Trump imposed a fourth tariff. He raised tariffs to
25% on $200 billion worth of goods. The Fed estimated it would cost the
average household $831 a year. Trump is increasing the pressure on
trade talks that are underway.
Trump threatened to expand that tariff to an additional $325 billion of
Chinese imports. That would raise prices on basically all Chinese
imports. On June 29, 2019, Trump delayed the proposed tariffs to
encourage renewed trade talks with China.
On June 1, 2019, China retaliated with a 25% tariff on $60 billion of
U.S. goods. Some investors are also worried China may sell some of
its $1.1 trillion in U.S. debt. That would send interest rates higher
and slow the U.S. economy.
On August 13, 2019, Trump threatened a 10% tariff on Chinese
electronics and clothing. The tariff would start on December 15 to
limit damage on the holiday shopping season. But the tariff would begin
on September 1 on other items.
Previous Tariffs
On January 22, 2018, President Trump imposed tariffs and quotas on
imported Chinese solar panels and washing machines. China is a world
leader in solar equipment manufacturing.
On March 8, 2018, Trump asked China to develop a plan to reduce the
trade deficit by $100 billion. China's economic reform plan includes
reducing its reliance on exports. But it said it can’t stop Americans
from demanding low-cost Chinese goods.
On March 22, 2018, the administration announced tariffs on $60 billion
of Chinese imports. It said China uses cybertheft, espionage, and
government pressure to obtain leading-edge technology. On March 23,
China announced tariffs on $3 billion of U.S. fruit, pork, recycled
aluminum, and steel pipes.
On March 26, 2018, the administration began negotiations with China.
It asked China to reduce tariffs on U.S. automobiles, import more U.S.
semiconductors, and grant greater access to its financial sector.
On April 3, 2018, the administration threatened a 25% tariff on $50
billion in Chinese electronics, aerospace, and machinery. On April
18, China penalized two other U.S. exports: sorghum and Boeing
airplanes. It targeted industries located in states that supported
Trump in the 2016 election. It lifted the sorghum tariffs on May 18.
On May 2, 2018, China canceled all U.S. soybean import
contracts. China imported $12 billion in U.S. soybeans to feed pigs,
its primary meat staple. It replaced U.S. beans with those from Brazil.
U.S. farmers sold one-half of their crop to China. As that market
disappeared, it hurt the United States more than China. In July 2018,
soybean prices hit a 10-year low as analysts predicted oversupply.
On April 5, 2018, Trump threatened tariffs on $100 billion more of
Chinese imports. It would cover just one-third of U.S. imports from
China. If China retaliated in kind, it would slap levies on all U.S.
exports to China.
On April 10, 2018, China announced it would reduce tariffs on imported
vehicles. But most automakers find it’s cheaper to build in China,
regardless of tariffs.
On May 4, 2018, the administration asked China to reduce the trade
deficit by $200 billion and cut tariffs on U.S. goods by 2020. It
asked China to end subsidies to tech companies, stop stealing U.S.
intellectual property, and become open to more U.S. investment.
On May 15, 2018, China agreed to allow Qualcomm to acquire NXP. In
exchange, the United States would remove tariffs on Chinese telecom
company ZTE. This agreement supports a mercantilist philosophy. It
promotes specific industries that are important for the leaders'
political purposes.
The telecom industry is part of China's growth strategy, which is one
reason Trump imposed tariffs. The other is that the company violated
U.S. sanctions against Iran and North Korea. On June 12, the Senate
blocked Trump's deal. Many countries see Trump's removal of tariffs
on ZTE as a weakness they could exploit. They will redouble efforts
to find exceptions to Trump's tariffs. Many European countries want to
avoid U.S. sanctions on Iran. They may threaten tariffs on U.S. imports
as a bargaining tool.
On May 21, 2018, China agreed to cut tariffs on U.S. auto imports from
25% to 15%. It would go into effect July 1.
On May 29, 2018, the administration said it would target $50 billion in
imports from China. It would also restrict Chinese acquisition of
U.S. technology.
On July 6, 2018, U.S. tariffs went into effect for $34 billion of
Chinese imports. China retaliated with a 40% tariff on U.S. autos.
Tesla announced it will build a factory in Shanghai to avoid the
tariff. China also announced tariffs on U.S. agricultural exports.
Midwest farmers have been stuck with excess produce and livestock. On
July 24, 2018, Trump announced he would offer $12 billion in subsidies
to American farmers. On August 27, the administration announced a
$4.7 billion bailout. Corn growers alone said their costs top $6
billion.
On July 11, 2018, the administration announced 10% tariffs on another
$200 billion of Chinese imports. They went into effect in
mid-September 2018, weeks before the 2018 midterm elections. The U.S.
also threatened 25% tariffs after January 1, 2019, on a variety of
consumer goods, including fish, luggage, tires, handbags, furniture,
apparel, and mattresses.
China threatened to retaliate by adding tariffs on $60 billion in U.S.
exports. In response, Trump threatened to add tariffs until all $500
billion of Chinese imports are affected. That could have reduced
economic growth by 0.75 points in 2018. It might have also threatened
U.S. shale oil exports. China buys 20% of U.S. oil exports.
On August 2, 2018, the administration announced a 25% tariff on $16
billion worth of Chinese goods. It went into effect on August 23. It
applied to industrial equipment like tractors, plastic tubes, and
chemicals. In response, China announced a 25% tariff on $16 billion
worth of U.S. goods, including autos and coal. It went into effect the
same day.
On September 18, 2018, the administration announced tariffs on $200
billion of Chinese imports. A 10% tariff would launch on September
24, 2018. It would increase to 25% on January 1, 2019. The tariffs were
imposed on 5,745 items. They encompassed a wide range of electronics,
food, tools, and housewares.
On December 1, 2018, President Trump met with China's President Xi
Jinping at the G-20 Conference. Trump agreed to delay the 25% tariff
increase from January 1, 2019, to March 1, 2019. Negotiators planned
to cover 142 issues. These included the protection of intellectual
property, technology, and cybersecurity, as well as currency,
agriculture, and energy.
On December 11, various federal agencies said they would condemn China
for stealing U.S. trade secrets and technologies. The Justice
Department would indict hackers who broke into U.S. networks. Later
that day, China agreed to roll back some auto tariffs raised earlier
in. It also agreed to reinstate some purchases of soybean imports and
allow U.S. firms greater access to Chinese industries.
On January 18, 2019, China agreed to increase its purchases of U.S.
exports and reduce the trade deficit.
On February 27, 2019, the administration dropped the threat of imposing
the 25% tariff. It was originally scheduled to begin January 1, then
moved to March 1, then dropped.
Causes of U.S. Trade War with China
U.S. politicians have long threatened a trade war with America's
largest trading partner in goods. A trade deficit occurs when exports
are less than imports.
In 2017, the United States exported $130 billion to China. The three
largest export categories are aircraft at $16 billion; soybeans, $12
billion; and automobiles, $11 billion. U.S. imports from China were
$506 billion. Most of it is electronics, clothing, and machinery.
Half of all Chinese imports are goods used by U.S. manufacturers to
make other products. They send raw materials to China for low-cost
assembly. Once shipped back to the United States, they are considered
imports. The tariffs raise their costs, forcing them to either raise
prices or lay off workers.
An example is salmon caught in Alaska and sent to China for processing,
then sent back to U.S. grocery shelves. If Trump imposes tariffs on
seafood imports, it will raise prices by 25 cents to 50 cents a pound.
China is the world's No.1 exporter. Its comparative advantage is that
it can produce consumer goods for lower costs than other countries can.
China has a lower standard of living, which allows its companies to pay
lower wages. American companies can't compete with China's low costs,
so it loses U.S. manufacturing jobs. Americans, of course, want these
goods for the lowest prices. Most are not willing to pay more for "Made
in America."
Trade War With the EU
On March 7, 2018, the EU threatened a 25% tariff on U.S. exports such
as cranberries, Harley Davidson motorcycles, blue jeans, and bourbon.
Trump delayed the steel tariff until May 1, 2018.
On April 21, 2018, the EU upgraded its trade agreement with Mexico.
Once signed, it will remove tariffs from almost all trade between the
two areas.
On May 1, 2018, Trump announced he would delay the steel tariff against
the EU until June 1, 2018. He wanted the U.S. ally to cut its 10%
tariff on U.S. autos. He also asked the EU to set quotas on its steel
exports.
But on May 31, 2018, Trump revoked the delay. He imposed the tariff on
Canada, Mexico, and the EU. The U.S. Aluminum Association said the
move will disrupt "supply chains that more than 97% of U.S. aluminum
industry jobs rely upon.”
On June 21, Germany proposed to end the EU's 10% tax on U.S. auto
imports if Trump forgot about imposing a 25% tax on European auto
imports. There is already a 25% U.S. tariff on light trucks.
On June 22, the EU retaliated to the steel tariffs with tariffs on $3.2
billion of American products. It targeted imports that will impact
Trump’s political base. Examples of these taxable imports are bourbon,
motorcycles, and orange juice.
On July 17, 2018, the EU signed a trade agreement with Japan. It
reduces or ends tariffs on almost all goods. It's the largest bilateral
trade agreement, covering $152 billion in goods. It will come into
force in 2019 after ratification.
On July 25, 2018, the EU and the United States agreed to hold off on
any new tariffs, reassess the steel and aluminum tariffs, and work
toward zero tariffs on non-auto industrial goods. The EU agreed to
import more U.S. liquefied natural gas and soybeans. That would reduce
its reliance on Russian LNG and help out American farmers who have lost
the Chinese market due to the trade war. But Russia's LNG price is much
lower than America's, so it's unlikely any big changes will be made
there.
On April 15, 2019, the Trump administration announced it would impose
tariffs on $11 billion in European imports. It wants to force the EU
to end subsidies for aircraft manufacturer Airbus. The tariffs could
raise prices on imported cheese, bicycles, and kitchen knives.
How It Affects You
The trade war has raised the prices of consumer goods that use steel
and aluminum. Soda and beer suppliers were the first to raise prices.
Costs have increased on imported clothes hangers, heavy-equipment
materials, and computer chip and tool makers.
The Alliance of Automobile Manufacturers warned that U.S.-produced
steel will cost more once cheap foreign imports are eliminated. The
move is "threatening the industry’s global competitiveness and
raising vehicle costs for our customers."
For example, Mid-Continent Nail in Missouri announced layoffs because
steel prices became too high for them to remain profitable.
Harley-Davidson announced it would move some production abroad to avoid
retaliatory EU tariffs.
The Maine lobster industry will suffer from Chinese retaliatory tariffs
on U.S. seafood. California cheese makers are already seeing their
markets in China and Mexico disappear due to retaliatory tariffs.
Wisconsin auto parts manufacturers and the U.S. bourbon industry are
other industries being punished. Tariffs have also slowed U.S. timber
and grain exports, according to The Wall Street Journal.
In October 2018, several companies forecast how much tariff-related
costs will hurt in 2019:
* United Technologies: $200 billion.
* 3M: $100 million.
* Honeywell: "hundreds of millions."
* Ford: $1 billion.
Foreign tariffs on U.S. exports will make them more expensive. U.S.
exporters may have to cut costs and lay off workers to remain
competitively priced. If they fail, they may cuts costs further or even
go out of business.
In the long term, trade wars slow economic growth. They create more
layoffs, not fewer, as foreign countries retaliate. The 12 million U.S.
workers who owe their jobs to exports could get laid off.
Consultant Oxford Economics predicted the trade war could cost the
global economy $800 billion in reduced trade. That could slow growth
by 0.4%. It's occurring at the same time that oil prices and interest
rates are rising.
Over time, trade wars weaken the protected domestic industry. Without
foreign competition, companies within the industry don't need to
innovate. Eventually, the local product would decline in quality
compared to foreign-made goods.
The Bottom Line
A trade war may improve a nation’s trade deficit in the short run but
it could cost warring nations their economic growth in the long term.
The United States is currently engaged in a trade war with China, the
EU, Mexico, and Canada. Because of this, the affected countries have
signed new trade agreements with other countries and have left America
out of the loop.
President Trump’s attempts at trade protectionism have already hurt the
U.S. economy. They raised the prices of automobiles, computer chips,
soda and beer, and heavy equipment. Companies have cut jobs because the
cost of production with local materials is prohibitive. U.S. exporters
of agricultural products, bourbon, cheese, and auto parts are suffering
as foreign markets disappear under retaliatory tariffs. Trump must
resolve the trade war soon before it wreaks serious damage on the U.S.
economy.
Article Table of Contents Skip to section
(BUTTON) Expand
* Trump's Trade Wars
* Trade War Major Events Timeline
* Causes of U.S. Trade War with China
* Trade War With the EU
* How It Affects You
* The Bottom Line
Article Sources
1. CNBC. "Trump Doubles Down: Trade Wars Are Good, and Easy to Win,"
Accessed Dec. 6, 2019.
2. The Wall Street Journal. "U.S. Businesses Ramp Up Lobbying Against
Trump’s Tariffs," Accessed Dec. 6, 2019.
3. The Wall Street Journal. "From Seafood to Mattresses: How the
Latest Tariffs Would Affect U.S. Businesses," Accessed Dec. 6,
2019.
4. The National Bureau of Economic Research. "The Impact of the 2018
Trade War on U.S. Prices and Welfare." Accessed Dec. 6, 2019.
5. NBCNews. "Trump's Trade War Could Spark a Recession, Goldman Sachs
Warns," Accessed Dec. 6, 2019.
6. The Wall Street Journal. "This One Here Is Gonna Kick My Butt—Farm
Belt Bankruptcies Are Soaring," Accessed Dec. 6, 2019.
7. Bloomberg. "U.S. Farmer Income Drops Most Since 2016 as Trade War
Losses Mount," Accessed Dec. 6, 2019.
8. The Wall Street Journal. "Trump Administration Rolls Out $16
Billion Farm-Aid Program," Accessed Dec. 6, 2019.
9. The New York Times. "In Message to Trump, Europe and Mexico
Announce Trade Pact," Accessed Dec. 6, 2019.
10. CNN Business. "EU and Japan Sign Trade Deal Covering a Third of the
World's Economy," Accessed Dec. 6, 2019.
11. The Wall Street Journal. "Trump Signs Metals Tariffs Sparing Some
Allies," Accessed Dec. 6, 2019.
12. CNBC. "Commerce Department Calls for Trump to Impose Steep Tariffs
or Quotas on Foreign Steel and Aluminum," Accessed Dec. 6, 2019.
13. The Washington Post. "Trump Says Steel Imports Are a Threat to
National Security. The Defense Industry Disagree," Accessed Dec. 6,
2019.
14. United States Department of Commerce. "Fact Sheet: Section 232
Investigations: The Effect of Imports on the National Security,"
Accessed Dec. 6, 2019.
15. Reuters. "Trump Steel Tariffs May Leave These U.S. Steelworkers
Jobless," Accessed Dec. 6, 2019.
16. The New York Times. "Troubles for Ford, G.M. and Fiat Chrysler Send
Shares Diving," Accessed Dec. 6, 2019.
17. Bloomberg. "Automakers Saved on Tax Cuts. Here’s How Much Could Be
Wiped Out by Tariffs," Accessed Dec. 6, 2019.
18. Business Insider. "Switzerland Joins a Growing List of Nations
Taking on Trump's 'Unjustified' Tariffs," Accessed Dec. 6, 2019.
19. The Wall Street Journal. "U.S. Wins ‘Modest’ Trade Concessions From
South Korea," Accessed Dec. 6, 2019.
20. The Washington Post. "Trump Did Something Unusual on the Trade
Front: He Removed a Tariff," Accessed Dec. 6, 2019.
21. The New York Times. "Mexico Will Face Tariffs Next Week, Trump
Vows," Accessed Dec. 6, 2019.
22. Bloomberg. "How ‘Made in China 2025’ Frames Trump's Trade Threats,"
Accessed Dec. 6, 2019.
23. National Bureau of Economic Research. "The Impact of the 2018 Trade
Was on U.S. Prices and Welfare," Accessed Dec. 6, 2019.
24. Politico. "Companies Scramble to Prepare for Trump's New Taxes on
Chinese Goods," Accessed Dec. 6, 2019.
25. The Wall Street Journal. "U.S. Slaps Higher Tariffs on Chinese
Imports as Trade Talks Resume," Accessed Dec. 6, 2019.
26. The Washington Post. "U.S. and China Agree to Restart Trade
Negotiations Following Meeting Between Trump and Xi at Group of 20
Summit," Accessed Dec. 6, 2019.
27. Reuters. "Factbox: Tariff Wars - Duties Imposed by Trump and U.S.
Trading Partners," Accessed Dec. 6, 2019.
28. Bloomberg. "Trade Feud Has Treasury Investors Eyeing China’s
Holdings at Fed," Accessed Dec. 6, 2019.
29. The Washington Post. "Trump Delays Some China Tariffs to Limit
Impact on Holiday Shopping," Accessed Dec. 6, 2019.
30. The Wall Street Journal. "U.S. Imposes New Tariffs, Ramping Up
‘America First’ Trade Policy" AccessedDec. 6, 2019.
31. The Wall Street Journal. "U.S. Asks China for Plan to Reduce Trade
Deficit by $100 Billion," Accessed Dec. 6, 2019.
32. The New York Times. "Trump Hits China With Stiff Trade Measures,"
Accessed Dec. 6, 2019.
33. The Wall Street Journal. "U.S. Trade Representative Criticizes
‘Unfair’ Practices by China," Accessed Dec. 6, 2019.
34. The Wall Street Journal. "China Fires Warning Shot at U.S. Over
Tariffs," Accessed Dec. 6, 2019.
35. The Wall Street Journal. "U.S., China Quietly Seek Trade Solutions
After Days of Loud Threats," Accessed Dec. 6, 2019.
36. The Washington Post. "Trump Administration Targets $50 Billion in
Chinese Electronics, Aerospace and Machinery Goods With Tariffs,"
Accessed Dec. 6, 2019.
37. AgriPulse. "US Grain Groups Relieved After China Lifts Sorghum
Tariff," Accessed Dec. 6, 2019.
38. CNBC. "It Appears China has Stopped Buying Soybeans from the US
Altogether Because of Trade Fight," Accessed Dec. 6, 2091.
39. The Wall Street Journal. "Soybean Prices Near Decade-Low as China
Tariffs Hammer Supply Forecast," Accessed Dec. 6, 2019.
40. The Wall Street Journal. "Trump Weighs Tariffs on $100 Billion More
of Chinese Goods," Accessed Dec. 6, 2019.
41. The Washington Post. "Trump is Asking China to Redo Just About
Everything with its Economy," Accessed Dec. 6, 2019.
42. The Wall Street Journal. "Trump’s ZTE Deal Is No U.S. Win,"
Accessed Dec. 6, 2019.
43. NBC News. "Senate Blocks ZTE Deal in Rebuke of Trump Deal,"
Accessed Dec. 6, 2019.
44. The Washington Post. "The Finance 202: Trump Caved to China on ZTE.
Now Other Countries are Sensing Weakness," Accessed Dec. 6, 2019.
45. Bloomberg. "China Makes Massive Cut to Car Tariffs After Truce With
Trump," Accessed Dec. 6, 2019.
46. The Wall Street Journal. "U.S. Moves Ahead on China Trade Curbs,
Catching Beijing Off Guard," Accessed Dec. 6, 2019.
47. The Washington Post. "U.S. Levies Tariffs on $34 Billion Worth of
Chinese Imports," Accessed Dec. 6, 2019.
48. The Wall Street Journal. "Tariff Dispute Threatens Exports of
American-Made Cars," Accessed Dec. 6, 2019.
49. The Wall Street Journal. "Tesla to Build Auto Factory in Shanghai,"
Accessed Dec. 6, 2019.
50. The Washington Post. "White House Readies Plan for $12 Billion in
Emergency Aid to Farmers Caught in Trump’s Escalating Trade War,"
Accessed Dec. 6, 2019.
51. The Wall Street Journal. "U.S. to Pay Farmers $4.7 Billion to
Offset Trade-Conflict Losses," Accessed Dec. 6, 2019.
52. The Wall Street Journal. "U.S. Unveils Additional Tariffs on $200
Billion More in Chinese Imports," Accessed Dec. 6, 2019.
53. USA Today. "U.S. Slaps Tariffs on Another $200 Billion in Chinese
Goods as Trade Tensions Escalate," Accessed Dec. 6, 2019.
54. The Washington Post. "China Retaliates With Tariffs on $16 Billion
Worth of U.S. Imports After Trump’s Latest Trade Hit," Accessed
Dec. 6, 2019.
55. The Washington Post. "The Finance 202: The Stock Market is
Shrugging Off Trump's Trade War. That May Not Last," Accessed Dec.
6, 2019.
56. The Wall Street Journal. "Tariff Dispute Threatens China’s Thirst
for U.S. Oil," Accessed Dec. 6, 2019.
57. Business Insider. "ROUND 2: US, China Announce Newest Round of
Tariffs as Trump's Trade War Shows No Sign of Slowing Down,"
Accessed Dec. 6, 2019.
58. Office of the United States Trade Representative. "USTR Finalizes
Tariffs on $200 Billion of Chinese Imports in Response to China’s
Unfair Trade Practices," Accessed Dec. 6, 2019.
59. The Office of the United States Trade Representative. "Tariff List
- September 17, 2018," Accessed Dec. 6, 2019.
60. The New York Times. "Trump Hits China With Tariffs on $200 Billion
in Goods, Escalating Trade War," Accessed Dec. 6, 2019.
61. Bloomberg. "U.S. Plans More China Tariffs If Trump-Xi Meeting
Fails, Sources Say," Accessed Dec. 6, 2019.
62. The Washington Post. "U.S. and China Agree to New Talks as Trump
Pulls Back on Tariffs," Accessed Dec. 6, 2019.
63. The Wall Street Journal. "Trump Team Set to Take Tough Stand in
90-Day Trade Talks With China," Accessed Dec. 6, 2019.
64. The Washington Post. "Trump Administration to Condemn China Over
Hacking and Economic Espionage, Escalating Tensions Between
Superpowers," Accessed Dec. 6, 2019.
65. The Wall Street Journal. "China Moves to Address U.S. Economic
Concerns," Accessed Dec. 6, 2019.
66. The Wall Street Journal. "U.S. Presses China on Trade Proposals,"
Accessed Dec. 6, 2019.
67. CNBC. "China Offers 6-Year Import Boost in Trade Talks with US:
Sources," Accessed Dec. 6, 2019.
68. The Wall Street Journal. "U.S. Drops Threat of 25% Tariffs on
Chinese Goods in Sign That Accord Is Near," Accessed Dec. 6, 2019.
69. Office of the United States Trade Representatives. "The People's
Republic of China," Accessed Dec. 6, 2019.
70. United States Census Bureau. "U.S. Exports to China by 5-digit
End-Use Code 2009 - 2018," Accessed Dec. 6, 2019.
71. The Wall Street Journal. "Tariffs Hit Those Trump Wants to Help:
U.S. Factories," Accessed Dec. 6, 2019.
72. The Wall Street Journey. "Fish Caught in America, Processed in
China Get Trapped by Trade Dispute," Accessed Dec. 6, 2019.
73. Peterson Institue for International Economics. "Europe Is Pushing
Back Against Trump's Steel and Aluminum Tariffs. Here's How,"
Accessed Dec. 6, 2019.
74. Peterson Institue for International Economics. "Who Is Affected by
Trump's Steel and Aluminum Tariffs?" Accessed Dec. 6, 2019.
75. The New York Times. "In Message to Trump, Europe and Mexico
Announce Trade Pact," Accessed Dec. 6, 2019.
76. The Wall Street Journal. "US Allies Relieved by Tariff Delay but
Concerns Linger," Accessed Dec. 6, 2019.
77. The New York Times. "White House to Impose Metal Tariffs on E.U.,
Canada and Mexico," Accessed Dec. 6, 2019.
78. The Wall Street Journal. "Germany’s Largest Auto Makers Back
Abolition of EU-U.S. Car Import Tariffs," Accessed Dec. 6, 2019.
The Wall Street Journal. "Trump Tariff Threat Vexes Allies and
Global Auto Makers," Accessed Dec. 6, 2019.
79. The Wall Street Journal. "U.S., Europeans Agree to Iron Out Trade
Differences," Accessed Dec. 6, 2019.
80. The New York Times. "Europe Retaliates Against Trump Tariffs,"
Accessed Dec. 6, 2019.
81. CNN Business. "EU and Japan Sign Trade Deal Covering a Third of the
World's Economy," Accessed Dec. 6, 2019.
82. The Washington Post. "Trump, E.U. Announce Deal to Avert Escalation
of Trade Tensions," Accessed Dec. 6, 2019.
83. The Wall Street Journal. "U.S. Moves to Impose Tariffs on $11
Billion of EU Goods," Accessed Dec. 6, 2019.
84. The Wall Street Journal. "Soda, Motorcycle Prices Rise as Tariffs
Hit Home for Consumers," Accessed Dec. 6, 2019.
85. Politico. "How the Trade War Hits Home," Accessed Dec. 6, 2019.
86. The Washington Post. The First Layoffs From Trump’s Tariffs Are
Here," Accessed Dec. 6, 2019.
87. The Wall Street Journal. "Trump Boils Maine Lobstermen," Accessed
Dec. 7, 2019.
88. McClatchy Washington Bureau. "California Dairy Farmers, Part of
Trump’s Base, Stand to Get Creamed by His Trade War," Accessed Dec.
7, 2019.
89. The New York Times. "How the ‘Biggest Trade War in Economic
History’ Is Playing Out," Accessed Dec. 7, 2019.
CNBC. "Whiskey Wars: Trade Tariffs Hit Hard in Trump Country."
Accessed Dec. 7, 2019.
90. The Wall Street Journal. "Companies Feel the Tariff Pinch,"
Accessed Dec. 7, 2019.
91. Reuters. "United Technologies Expects Higher Cost in 2019 Due to
Tariffs," Accessed Dec. 7, 2019.
92. Star Tribune. "3M Shares Drop Sharply After Q3 Profit Misses
Expectations," Accessed Dec. 7, 2019.
93. Yahoo Finance. "Honeywell Says China Growth Slowing, Tariffs to
Squeeze Margins." Accessed Dec. 7, 2019.
94. Reuters. "Trump Metals Tariffs Will Cost Ford $1 Billion in
Profits, CEO Says," Accessed Dec. 7, 2019.
95. Business Insider. "Trump's Trade War Could Destroy 4% of Global
Trade: The Threat to World Growth is Significant," Accessed Dec. 7,
2019.
(BUTTON)
Continue Reading
+
* [:0]
The Real Reason American Jobs Are Going to China
* International cargo
4 Reasons Why International Trade Is Slowing
* President Donald Trump
Donald Trump's Economic Plan and How It Is Changing the Economy
* car in factory
Why Tariffs Raise Prices
* Text reads:
The Surprising Ways China Affects the U.S. Economy
* Trump and Obama
Is Trump or Obama Best for the Economy?
* Image shows a folder open on the presidential desk. On the inside
of the folder it reads:
6 Ways Trump Changed NAFTA
* Trade protectionism infographic
Why Protectionism Feels So Good but Is So Wrong
* Two cartoon men use a rope to pull a floating dollar and euro sign
closer together with Transatlantic Trade
Will the World's Largest Trade Agreement Ever Be Signed?
* Handshake and north Atlantic map
How Most Favored Nation Status Lowers Your Shopping Bill
* Men eating in a soup kitchen during the US Great Depression
Those Who Don't Learn From Smoot-Hawley Are Doomed to Repeat It
* Brexit
Brexit Consequences for the U.K., the EU, and the United States
* Trade cargo ships
How Trump Is Trying to Destroy the WTO
* [:0]
5 Reasons Why America's Manufacturing Is Growing Again
* Dock workers accepting imports
Why America Cannot Just Make Everything It Needs
* yuan dollar conversion
How a Tiny Change in the Yuan Can Panic Investors
Our Best Money Tips, Delivered
Email Address ____________________
(BUTTON) Sign up
You're in! Thanks for signing up.
There was an error. Please try again.
Facebook Pinterest Twitter Flipboard Linkedin
* Investing
* Credit Cards
* Taxes
* Banking & Loans
* About Us
* Advertise
* Terms of Use
* Privacy Policy
* Cookie Policy
* Careers
* Contact
* Editorial Guidelines
Also from The Balance Team
The Balance Small Business
The Balance Careers
TRUSTe
The Balance is part of the Dotdash publishing family.
* Lifewire
* ThoughtCo
* TripSavvy
* The Spruce
* and more