The tariffs that he and his administration imposed during Donald Trump’s presidency are still echoing through U.S. trade dynamics years after their implementation. The Trump tariffs were the starting gun for a much larger trade war. They studied the effects on a variety of imported products, like steel, aluminum, and even solar panels. In July 2018, the first round of punitive tariffs went into effect. These tariffs were aimed specifically at Chinese imports and were expanded to include more than $360 billion of their goods.
When the tariffs were first imposed, China retaliated almost immediately. In response, they stacked retaliatory tariffs on more than $100 billion of U.S. products. This tit-for-tat raised the stakes between the two countries, causing immense disruptions to supply chains worldwide. Companies started moving their production out of China to avoid the new costs in the form of these tariffs.
The economic implications were noteworthy. In fact, most experts believe that the Trump tariffs decreased U.S. GDP by about 0.3%. American consumers footed the bill, as businesses absorbed increased costs from tariffs, which hurt spending habits and dampened overall consumer outlook. As inflationary pressure rose, this fostered opposition from a wide array of economists and political actors. Each time, they claimed those measures were damaging the U.S. economy.
The solar panel industry was one industry that was hit especially hard by the tariffs. Opponents of the tariffs pointed out this created a domestic disadvantage to growing the renewable energy sector, and ultimately could threaten future investments in clean technology. The economic fallout for affected industries has raised complex questions and released a torrent of debate over whether these trade policies are likely to produce long-term gains.
After the move to the Biden administration, most of the Trump-era tariffs stayed in place, with some modifications. The continuation of these tariffs indicates a sustained commitment to protecting certain U.S. industries, though it raises concerns about potential retaliatory measures from trading partners.
For the first time since 2009, global trade volumes decreased in 2019 as the effects of the trade war continued to spread. Economists and policymakers are just beginning to understand the impact of the Trump tariffs on international trade and domestic industries. The discussion around their effects is ongoing, as proponents and critics alike gauge their success and what it means for the future of U.S. trade policy.