Quick Take | And you thought China is the only country Trump has gone to war with?
At least China has enough muscle to fight its corner – America’s ‘friends’ may not be so lucky
When he was campaigning to be president, in a seven-point economic plan to “Make America Great Again”, Trump had promised to employ Section 232 of the Trade Expansion Act of 1962 as well as Section 201 and Section 301 of the Trade Act of 1974 to punitively sanction countries that had serially run-up trade surplus vis-à-vis the United States (in his view unfairly extracting America’s wealth). Trump as president has put each of these tools to use and it’s America’s allies that have borne the brunt.
US-China trade war: who wins, who loses?
On January 22, Trump signed a proclamation under Section 201 of the Trade Act, imposing tariffs on imports of solar cells, modules and manufactured washing machines. The action was the first of its kind in 16 years, with South Korea, China and Vietnam its key intended targets.
WATCH: Trade war threatens China’s love for American barbecue
On March 8, Trump imposed a global tariff of 25 per cent on steel imports and 10 per cent on aluminium imports, under Section 232 of the Trade Expansion Act. The probe was the first of its kind since one launched on iron and steel in 2001. Canada, Mexico and the European Union have taken the largest hits from this. China, not so much – it is not among the top 10 steel exporters to the US. Another Section 232 probe on autos and parts that could impact bottom lines in Germany and Japan is underway.
On March 23, Trump issued a memorandum listing measures to be initiated against China following a Section 301 investigation of its trade, investment and intellectual property policies and practices. On Friday, a first tranche of tariffs under Section 301 went into effect – the first time it has been so used against a trading partner since the early 1990s.
WATCH: The US-China trade war and its impact on consumers
Trump’s actions have not gone unanswered. In eight months, the US has been hauled up within the World Trade Organisation’s dispute settlement system on a record 16 occasions by nine trading partners. Although these partners range from treaty allies to adversaries, a disproportionate number are the former (Japan, South Korea the EU, Canada, Norway) or are sought-after partners (India, Vietnam).
China and Trump’s tariffs: stop, or I’ll shoot myself too
