Timeline: Major developments in Trump’s trade war - The Straits Times

The period between 2018 and 2020 marked a turbulent phase in global trade, characterized by the United States' imposition of significant tariffs on imported goods, primarily targeting China. This "trade war" commenced with duties on steel and aluminum imports, citing national security concerns, and rapidly expanded to include a vast array of Chinese products under allegations of intellectual property theft. These actions triggered a series of retaliatory measures from Beijing, creating a complex and ever-evolving landscape for businesses engaged in international trade.

The conflict unfolded through a precise timeline of announcements, implementations, and counter-measures, with specific rates and dates dictating the financial burden on importers and exporters. Understanding these key developments is essential for comprehending the current trade environment and its lasting implications.

Key Developments and Tariff Actions

• March 1, 2018: President Donald Trump announced tariffs of 25% on steel imports and 10% on aluminum imports. These were formally implemented on March 8, 2018, under Section 232 of the Trade Expansion Act of 1962, citing national security concerns.
• April 3, 2018: The US Trade Representative (USTR) proposed 25% tariffs on 1,300 Chinese industrial, transport, and medical goods, valued at $50 billion annually. This action was taken under Section 301 of the Trade Act of 1974, in response to alleged intellectual property theft. China retaliated the next day, proposing tariffs on 106 US products, including soybeans, cars, and chemicals, also valued at $50 billion.
• July 6, 2018: The US imposed 25% tariffs on $34 billion worth of Chinese goods. China immediately retaliated with 25% tariffs on $34 billion of US goods.
• August 23, 2018: The US imposed 25% tariffs on an additional $16 billion worth of Chinese goods. China again retaliated with 25% tariffs on $16 billion of US goods.
• September 24, 2018: The US imposed 10% tariffs on $200 billion worth of Chinese goods. These tariffs were initially set to rise to 25% on January 1, 2019, but this increase was delayed for 90 days following negotiations on December 1, 2018. China retaliated with tariffs on $60 billion of US goods.
• May 10, 2019: The US increased tariffs from 10% to 25% on the $200 billion worth of Chinese goods, citing China's backtracking on commitments. China announced retaliatory tariffs on $60 billion worth of US goods, effective June 1, 2019, with rates ranging from 5% to 25%.
• August 1, 2019: An additional 10% tariff was announced on the remaining $300 billion worth of Chinese imports, effective September 1, 2019. However, on August 13, 2019, the USTR delayed tariffs on some consumer goods (e.g., cellphones, laptops, toys, footwear, clothing) until December 15, 2019, to mitigate consumer impact.
• August 23, 2019: China announced retaliatory tariffs on $75 billion worth of US goods, including a 5% tariff on US crude oil. In response, the US increased existing 25% tariffs on $250 billion of Chinese goods to 30% (effective October 1, 2019) and raised the new 10% tariffs on $300 billion of Chinese goods to 15% (effective September 1, 2019).
• September 1, 2019: The US imposed 15% tariffs on $112 billion worth of Chinese goods, as planned.
• December 13, 2019: The US and China announced a "Phase One" trade agreement. The US agreed to suspend new tariffs on $160 billion of Chinese goods (scheduled for December 15) and halve the 15% tariffs on $112 billion of Chinese goods to 7.5%. China committed to increasing purchases of US farm goods and other products. This deal was formally signed on January 15, 2020.

The extensive tariff actions significantly impacted a broad spectrum of businesses. Importers of steel and aluminum products, regardless of origin initially, faced higher costs due to the Section 232 tariffs. More broadly, importers sourcing a vast range of goods from China, including industrial machinery, transportation equipment, medical devices, consumer electronics like cellphones and laptops, toys, footwear, and clothing, were directly affected by the Section 301 tariffs. Conversely, US exporters of agricultural products (like soybeans), automobiles, chemicals, and crude oil faced retaliatory tariffs from China, impacting their competitiveness in the Chinese market.

For importers, customs brokers, and trade compliance officers, understanding the nuances of these tariff regimes remains crucial. While the "Phase One" deal brought some relief and stability, many tariffs imposed during this period remain in effect. It is imperative to:

• Continuously monitor official announcements from the US Trade Representative (USTR) and US Customs and Border Protection (CBP) for any changes, suspensions, or new exclusions related to Section 232 and Section 301 tariffs.
• Accurately classify goods under the Harmonized Tariff Schedule (HTS) to determine applicable duty rates and potential tariff exposure.
• Evaluate and diversify supply chains to mitigate risks associated with concentrated sourcing from tariff-affected regions.
• Assess the financial impact of existing tariffs on landed costs and profitability, and adjust pricing strategies accordingly.
• Explore available duty mitigation strategies, such as tariff exclusions (if applicable and still active), duty drawback, or first sale for export programs, where appropriate.