Trump Tracker: US Trade

Trump Tracker: US Trade

The Trump administration’s presidency has been marked by significant changes in US trade policies, which have had far-reaching impacts on global markets, economies, and industries. To provide readers with a comprehensive overview of these developments, we present the "Trump Tracker: US Trade," an ongoing series that summarizes the key events, decisions, and changes in US trade policy since January 2017.

Early Moves (January 2017 – June 2017)

The Trump administration quickly got to work on its campaign promises to shake up the US trade landscape. Some of the earliest moves included:

1. Withdrawal from the Trans-Pacific Partnership (TPP): On January 23, 2017, the US officially withdrew from the TPP, a massive free-trade pact with 11 other Pacific Rim countries.
2. Withdrawal from the Transatlantic Trade and Investment Partnership (TTIP): The US also withdrew from TTIP negotiations with the European Union in May 2017.

Tariffs and Trade Agreements (July 2017 – December 2017)

The administration continued to make its mark on trade policy through a series of executive orders, pronouncements, and agreements:

1. Section 232 Steel and Aluminum Tariffs: In March 2018, the Trump administration imposed 25% and 10% tariffs, respectively, on imported steel and aluminum (see below).
2. NAFTA Renegotiation: The US, Mexico, and Canada reinitiated negotiations on the North American Free Trade Agreement (NAFTA), which would eventually become the United States-Mexico-Canada Agreement (USMCA).
3. VOES and 301 Tariffs: The administration imposed tariffs on imported solar panels (2.5% and 30%) and targeted $50 billion worth of Chinese goods (25%) under Section 301 of the 1974 Trade Act, citing intellectual property theft.

Section 232 Investigations and Tariffs (2018-2019)

The Trump administration launched investigations into the following industries, leading to subsequent tariff imposition:

1. Steel and Aluminum: As mentioned earlier, the administration imposed 25% and 10% tariffs on imported steel and aluminum.
2. Lumber: In January 2018, the administration imposed a 20% tariff on Canadian softwood lumber imports.
3. Poultry and Pigs: In March 2018, the administration announced a 10% to 30% tariff on imported poultry and pig products.
4. Watches, Purses, and Handbags: In August 2018, the administration imposed a 10% to 30% tariff on imported watches, purses, and handbags.
5. Automotive Parts: In July 2018, the administration launched an investigation into imported automotive parts, which could potentially lead to tariffs.

Global Trade Tensions and Countermeasures (2020)

The COVID-19 pandemic and subsequent economic downturn have exacerbated trade tensions, prompting nations to implement protectionist measures:

1. China-US Trade Deal: In December 2020, the US and China signed a Phase One trade deal, aiming to reduce trade tensions and address intellectual property concerns.
2. European Union-US Trade Disputes: The EU and the US have engaged in a series of trade disputes, including tariffs on steel, aluminum, and other products.
3. India-US Trade Disputes: The US and India have clashed over issues like tariff imposition, agricultural subsidies, and intellectual property.

Outlook and Future Developments

As the trade landscape continues to evolve, the following areas will remain critical for the Trump administration and the global economy:

1. USMCA and NAFTA renegotiation: The USMCA will have to be ratified by Congress, while the administration may re-engage with countries like Vietnam and Japan on trade agreements.
2. China-US Trade: The Phase One deal is only the first step; ongoing tensions will require sustained diplomacy and potential new agreements.
3. Global Trade and Investment: As the world navigates the impact of the COVID-19 pandemic, global trade and investment will continue to be shaped by protectionism, tariffs, and bilateral agreements.

The Trump Tracker: US Trade will continue to monitor these developments, providing readers with updates, analysis, and insights on the complex and rapidly changing world of international trade.