29 June 2018

State of the Trade Wars

BY AMY CHENG, HUMZA JILANI, KEITH JOHNSON, AMY MACKINNON
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The Trump administration’s protectionist measures on trade are piling up — and so are the retaliatory moves from a spate of other countries. What began with small-scale U.S. tariffs on washing machines and solar panels has now broadened to include steel and aluminum from all over the world, plus hundreds of products from China. Those tariffs have prompted a tit for tat response from affected countries, which target key U.S. exports such as bourbon, motorcycles, and orange juice. And there could be more to come, with the Trump administration studying further tariffs on imported cars and threatening much more action against China.


Here’s how the U.S. tariffs and international reprisals stand.

U.S. Tariffs

Country AffectedGoods affectedTariff %Value of Affected ExportsThreatened or ImplementedAll countries (South Korea, Argentina, Australia, and Brazil exempt due to voluntary export limits) Steel 25 percent $30 billion (U.S. 2017 imports) Implemented
All countries (South Korea, Argentina, Australia, and Brazil exempt due to voluntary export limits) Aluminum 10 percent $17 billion (U.S. 2017 imports) Implemented
All Countries Washing machines and solar panels 20 to 30 percent $10.3 billion (combined) Implemented
All Countries Cars and auto parts 25 percent is being discussed $208 billion (cars only) Under consideration
China 818 different goods, broadly those that include “industrially significant technologies” 25 percent $50 billion total (to be implemented in increments) First round of tariffs on $34 billion will come into force July 6, implementation of remaining $16 billion will then be subject to review
China Under discussion 10 percent (for now, may be subject to change) $200 billion Threatened on June 18

International Retaliation

Country AffectedGoods AffectedTariffValue of Affected ExportsImplemented or ThreatenedChina 659 U.S. products such as pork, soybeans, seafood, automobiles, and chemicals 25 percent A total of $50 billion: $34 billion will go into effect on July 6; the remaining $16 billion is under review Will be partially implemented on July 6
Canada Industrial metal such as steel and aluminum, as well as consumer products such as maple syrup, pizza, and toilet paper 25 percent or 10 percent depending on the item $12.5 billion Will be implemented on July 1
Mexico U.S. products such as steel goods, cheese, cranberries, bourbon, and pork 25 percent or 20 percent depending on the item $3 billion Implemented
European Union U.S. exports such as peanut butter, bourbon, orange juice, steel, and agricultural products 10 percent, 25 percent, 35 percent, or 50 percent depending on the item $3.4 billion Will be implemented in July
Turkey 22 U.S. items including coal, paper, walnuts, almonds, tobacco, whiskey, automobiles, cosmetics, machinery, and petrochemical products 40 percent maximum $1.8 billion Implemented
Japan To be announced, as Japan is still weighing its options and has not released any concrete information about its retaliatory tariffs TBA $409 million Threatened
India 29 items including lentils, almonds, walnuts, shrimp, apples, and some chemical and metal products 10 to 50 percent depending on the item $240 million* Implemented
Russia Potentially targeting road construction equipment, among other products TBA TBA Threatened

*This number represents the projected value of the tariffs to India. The value of the goods affected by the tariffs could not be determined.

Amy Cheng is an editorial intern at Foreign Policy. (@Amy_23_Cheng)

Humza Jilani is an editorial intern at Foreign Policy. (@humza_jilani)

Keith Johnson is Foreign Policy’s global geoeconomics correspondent. (@KFJ_FP)

Amy Mackinnon is an editorial intern at Foreign Policy. (@ak_mack)

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