First Trump tariffs
[35] 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.
[43] 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".
[59] 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".
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.
[71] 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.
[86][87] 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.
[88] 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.
[104][105][106] General Motors announced closure of plants in Maryland, Michigan, Ohio, and Ontario, and cutting over 14,000 jobs, citing steel tariffs as a factor.
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".
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.
[132][133] 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.
"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.
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".
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.
[180][181] 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.
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 ... 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.
[206][207] 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.
[211] 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.
[212] 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.
[213] 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.
[214] 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.
[215][needs update] 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).
"[25] The study also found that workers in heavily Republican counties suffered the most from the trade war, because retaliatory tariffs focused on agricultural products.
[204]: 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.
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.
[235][236] 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.
[238] 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.
