Timeline: Major developments in Donald Trump's trade war - RTE.ie
The period under former President Donald Trump saw a significant shift in global trade policy, marked by the implementation of various tariffs often referred to as a "trade war." These measures, primarily targeting imports from China but also impacting key allies, created a volatile environment for international trade. For importers, customs brokers, and trade compliance officers, navigating this landscape required constant vigilance and adaptation to rapidly changing duty rates and regulations. The tariffs were largely justified under Section 232 of the Trade Expansion Act of 1962, citing national security concerns, and Section 301 of the Trade Act of 1974, addressing unfair trade practices.
Section 232 Tariffs: Steel and Aluminum
One of the initial major moves came on March 1, 2018, when President Trump announced plans for a 25% tariff on steel imports and a 10% tariff on aluminum imports. These tariffs, implemented under Section 232, were formally signed into proclamation on March 8, 2018, and took effect on March 23, 2018. Initially, these duties applied broadly, but exemptions were later granted to several countries, including Canada, Mexico, the European Union (EU), Australia, Argentina, Brazil, and South Korea. However, the scope of these tariffs was broadened again on June 1, 2018, when they were extended to imports from the EU, Canada, and Mexico, significantly impacting supply chains from these key trading partners.
Section 301 Tariffs: The China Trade War Begins
The trade dispute with China escalated dramatically with the imposition of Section 301 tariffs, targeting a wide range of Chinese goods. On July 6, 2018, the U.S. imposed a 25% tariff on approximately $34 billion worth of Chinese goods across 818 specific product categories. China quickly retaliated with 25% tariffs on $34 billion of U.S. goods, including critical agricultural products like soybeans, as well as cars and pork. This was followed on August 23, 2018, by another round of U.S. tariffs, applying 25% duties on an additional $16 billion of Chinese goods, which again met with reciprocal tariffs from China.
The tariff actions expanded further on September 24, 2018, when the U.S. imposed a 10% tariff on $200 billion of Chinese goods, with an announced plan to raise this rate to 25% on January 1, 2019. China responded by placing tariffs on $60 billion of U.S. goods. A temporary pause in escalation occurred on December 1, 2018, when the U.S. and China agreed to a 90-day truce, postponing the planned tariff hike on the $200 billion tranche until March 2, 2019. This truce was subsequently extended indefinitely on March 1, 2019.
Renewed Escalation and the Phase One Deal
Despite the truce, tensions reignited. On May 10, 2019, the U.S. proceeded to raise the tariffs on the $200 billion worth of Chinese goods from 10% to 25%. China retaliated by increasing tariffs on $60 billion of U.S. goods, effective June 1, 2019. The U.S. then announced plans on May 13, 2019, to impose 25% tariffs on the remaining $300 billion of Chinese goods not yet subject to duties.
After a brief resumption of talks on June 29, 2019, which temporarily postponed new tariffs, President Trump announced on August 1, 2019, a 10% tariff on the remaining $300 billion of Chinese goods, effective September 1, 2019. Some of these tariffs were later delayed until December 15, 2019, for specific items such as cell phones, laptops, toys, footwear, and clothing. On August 23, 2019, China announced retaliatory tariffs on $75 billion of U.S. goods. Simultaneously, the U.S. announced an increase of existing 25% tariffs on $250 billion of Chinese goods to 30%, effective October 1, and the 10% tariffs on $300 billion of Chinese goods to 15%, effective September 1. The first phase of these new tariffs took effect on September 1, 2019, with 15% duties on $112 billion of Chinese goods.
A significant turning point came on December 13, 2019, with the announcement of a "Phase One" trade deal. As part of this agreement, the U.S. suspended planned December 15 tariffs on $160 billion of Chinese goods and agreed to halve the existing 15% tariffs on $112 billion of Chinese goods to 7.5%. However, the 25% tariffs on $250 billion of Chinese goods remained in place. The Phase One deal was formally signed on January 15, 2020, and officially took effect on February 14, 2020, with China committing to purchase an additional $200 billion in U.S. goods and services over two years.
What Importers Should Do
This timeline highlights the dynamic and often unpredictable nature of trade policy during this period. For importers, customs brokers, and trade compliance officers, the critical need for continuous monitoring of trade policy announcements, particularly regarding Section 232 and Section 301 tariffs, remains paramount. Businesses should regularly verify the Harmonized Tariff Schedule (HTS) classifications for their goods, understand the rules of origin, and stay informed about specific tariff rates and effective dates that apply to their supply chains. Proactive engagement with customs counsel or trade compliance experts is essential to mitigate risks, ensure adherence to evolving regulations, and manage the financial impact of these duties, especially when dealing with goods originating from or transiting through countries subject to these measures.