Trump’s Tariff Policies (2018–2019): Consequences of Trump past tariffs on domestic economic variables

Andrea Zito
May 1
1 min read

Updated: May 4

Donald Trump’s election in 2016 marked a decisive turn in U.S. trade policy. Breaking with decades of support for multilateralism and open markets, his administration pursued an aggressively protectionist agenda under the banner of ”America First”.

A central pillar of this shift was the widespread use of unilateral tariffs as a strategic instrument to reduce the trade deficit, restore domestic manufacturing, and counter perceived unfair trade practices, particularly by China.

The administration also implemented tariffs against traditional allies, including the European Union, Mexico, and Canada, on grounds of national security (Sections 201 and 232 of U.S. trade law). However, the most extensive and sustained trade conflict was undoubtedly the U.S.-China trade war.

The first major tariffs were announced in early 2018.

The figure below illustrates the trade coverage of Trump’s five different tariffs. The largest was the “unfair trade” action on China, which covered 10.4 percent of US imports. Next came the tariffs on steel (2 percent), aluminum (0.7 percent), solar panels (0.3 percent), and washing machines (0.1 percent).