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| 2018 United States tariffs | |
|---|---|
| Title | 2018 United States tariffs |
| Date | 2018 |
| Venue | United States |
| Type | Trade policy |
| Participants | Donald Trump, United States Department of Commerce, United States Trade Representative, World Trade Organization |
2018 United States tariffs were a set of import duties and related measures initiated in 2018 under the administration of Donald Trump that targeted steel, aluminum, and a broad range of Chinese industrial and consumer goods. The measures provoked extensive domestic debate involving United States Congress, United States Department of Commerce, United States Trade Representative, Federal Reserve System, and affected multinational firms including Apple Inc., Boeing, and General Motors. The actions led to retaliatory steps by trading partners such as the European Union, China, Canada, and Mexico, and generated disputes adjudicated at the World Trade Organization and in bilateral negotiations involving figures like Robert Lighthizer and Wilbur Ross.
The tariffs were rooted in policy positions advanced during the 2016 campaign by Donald Trump and pursued by officials including Robert Lighthizer, Wilbur Ross, and Peter Navarro. Advocates referenced statutes such as Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 as legal bases, invoking concerns widely discussed in analyses by Council on Foreign Relations, Brookings Institution, Peterson Institute for International Economics, and commentators in outlets like The Wall Street Journal and The New York Times. Supporters cited perceived distortions linked to imports from countries named in reports by the United States International Trade Commission, while critics drew comparisons to historical protectionist episodes such as the Smoot–Hawley Tariff Act and invoked warnings from leaders like Christine Lagarde of the International Monetary Fund and central bankers at the Federal Reserve Bank of New York.
Initial measures in March 2018 imposed 25% duties on most steel imports and 10% on most aluminum imports under Section 232, affecting shipments from producers in China, Russia, Turkey, Brazil, South Korea, Japan, and India. Subsequent actions under Section 301 targeted hundreds of billions of dollars of goods from China including industrial machinery, electronics, textiles, and consumer products, with lists announced in multiple tranches that cited alleged practices identified by the Office of the United States Trade Representative. Sectors impacted included aerospace suppliers to Boeing, automotive components for Ford Motor Company and General Motors, agricultural commodities such as soybeans central to states like Iowa and Illinois, and technology inputs used by Intel Corporation, Qualcomm, and Apple Inc.. The measures also led to retaliatory tariffs on exports from United States Department of Agriculture producers and targeted states represented by lawmakers in United States Senate and United States House of Representatives committees on trade.
Implementation relied on determinations issued by Wilbur Ross at the United States Department of Commerce and proclamations from the White House under authority delegated to the United States Trade Representative and the President of the United States. The administration invoked Section 232 to justify national security exceptions and Section 301 to address alleged unfair Chinaan practices described in reports produced by the Office of the United States Trade Representative. Legal challenges were filed in federal courts by trade groups including the National Association of Manufacturers and state coalitions representing governors such as Jay Inslee of Washington (state), while procedural scrutiny involved Congressional oversight from committees chaired by figures like Nancy Pelosi and Chuck Grassley.
Analyses by academic institutions such as Harvard University, Massachusetts Institute of Technology, University of Chicago, and think tanks including the American Enterprise Institute and Economic Policy Institute estimated mixed effects: increased protection for domestic producers in the steel and aluminum industries versus higher input costs for manufacturers like Caterpillar Inc. and John Deere. Farmers faced demand shocks after retaliatory measures from China and the European Union, prompting emergency aid administered by the United States Department of Agriculture and congressional appropriations debated in the United States Congress. Financial markets reacted with volatility monitored by the Securities and Exchange Commission and commentary from leaders of Goldman Sachs and JPMorgan Chase who assessed implications for supply chains involving firms such as Tesla, Inc. and General Electric.
Trading partners responded with retaliatory tariffs and legal complaints: the European Union imposed duties negotiated through the European Commission affecting goods from United States exporters and pursued dispute settlement at the World Trade Organization. China retaliated with levies covering soybeans and automobiles and launched countermeasures while pursuing litigation and negotiation led by officials within the Ministry of Commerce (China). Canada and Mexico coordinated responses tied to renegotiation of the North American Free Trade Agreement into the United States–Mexico–Canada Agreement, with leaders such as Justin Trudeau and Andrés Manuel López Obrador engaging in diplomacy. Allied governments including Japan and South Korea voiced objections through ambassadors to Washington, D.C. and through consultations at summits such as the Group of Seven and Asia-Pacific Economic Cooperation meetings.
Domestically, tariffs created cleavages within parties and among legislators representing industrial states like Ohio and Pennsylvania, influencing electoral politics and debates within the Republican Party and Democratic Party. Internationally, the measures strained relations with traditional allies including Germany and United Kingdom, complicated negotiations over security cooperation within NATO, and became a focal point in bilateral discussions between Donald Trump and foreign leaders such as Xi Jinping of China and Emmanuel Macron of France. Diplomatic exchanges occurred at venues including the G20 Buenos Aires summit and in negotiating sessions at the White House and foreign ministries.
Over ensuing years, some tariffs were adjusted, exemptions granted, and additional tariffs negotiated as part of agreements including the United States–Mexico–Canada Agreement and phases of the China–United States trade war culminating in a "Phase One" agreement. Litigation advanced through federal courts and dispute settlement panels at the World Trade Organization, while later administrations reviewed policy options, considering recommendations from bodies such as the United States International Trade Commission, Council of Economic Advisers, and advisory committees including the Manufacturers' Association. The legacy influenced debates on industrial policy, supply chain resiliency, and trade law interpretation in forums like the American Bar Association and academic conferences at Harvard Kennedy School.