Seven trade wars in American history

   In a trade war, different policies have very different endings. The Boston Tea Case brought the American War of Independence, but the Smoot-Hawley Tariff Act ended in a fiasco. Let ’s look back and see what impact these seven trade wars have had on the United States.
   Boston Tea Party case
   main parties: People’s North American colonies, the British Parliament
   arms trade: tea
   , “no taxation without representation” – this is December 16, 1773, a group of North American colonists shouted at Griffin Wharf Boston Loud slogan. They resisted various taxation policies imposed by the British government. In 1765, the British Parliament promulgated the Stamp Duty Act and two years later the Townsend Act was promulgated. This series of bills has taxed North American colonies everywhere, from newspapers to playing cards, from paint to glass. Of course, tea is naturally indispensable.
   In 1770, the North American colonial peoples clashed with the British army and the Boston Massacre. Afterwards, the King of England terminated any taxation on the colony, but retained the tax on tea. This protection of the British East India Company caused strong resistance from North American colonies and stimulated tea smuggling. On the night of December 16, 1773, under the leadership of John Hancock, John Adams, and Paul Revere, members of the “Children of Liberty” of the American Anti-Colonialism Association at the time would pay 342 boxes of tea worth about 90,000 pounds at that time. All poured into Boston Bay as a protest.
   After the incident, the British Parliament and King George II issued a series of “compulsory decrees.” According to these decrees, the Boston Harbor was closed and could not be opened until damage to tea was compensated; the autonomy of Massachusetts was revoked; the British army could enter colonial houses if necessary. This provoked the united resistance of the colonial people, who claimed that the United States had the right to control itself. Finally, on April 19, 1775, the American Revolutionary War broke out.
   “Smoot – Hawley Tariff Act”
   key players: the United States, Canada, European countries and other countries in
   trade weapons: tens of thousands of imported goods
   In the early part of the Great Depression of the last century, the agricultural crisis in the United States had already appeared. When President Herbert Hoover proposed increasing import tariffs on agricultural products, it was originally intended to help farmers out of trouble. However, the bill introduced by Senators Reed Smut and Willis C. Holley covers more: in addition to agricultural products, they also demand increased import duties on industrial products. Thousands of economists wrote to President Hoover in the hope of rejecting the bill. However, President Hoover eventually signed the Smoot-Hawley Tariff Act in 1930. In retaliation, a global trade war against the United States broke out. The already deteriorating US economy is getting worse.
   After the passage of the Smoot-Hawley Tariff Act, many countries have taken retaliatory tariffs against the United States, and Canada has joined in. By 1933, US exports had plummeted by 61%. Instead of recovering, the US economy has worsened. The economic downturn made President Hoover defeated by Franklin Roosevelt in the next election. Of course, Smut and Holly were also fired. In 1934, at the proposal of President Roosevelt, the US Congress passed the Reciprocal Trade Agreement Act. The bill, while replacing the Smoot-Hawley Tariff Act, also gave the US President the right to negotiate tariff increases and decreases.
   Chicken trade war
   key players: the United States, France, West Germany
   trade weapons: chicken, brandy, cars and other goods
   in the 1960s, advances in large-scale farming so that US chicken slashed prices, and therefore the amount of European countries increased sharply their imports. Americans are making a fortune, but farmers in France and West Germany are uncomfortable, and they have demanded tariffs on poultry imported from the United States. Seeing the U.S. poultry industry was hit hard, then President Johnson implemented a retaliatory measure-a 25% tariff on light trucks, brandy, potatoes and starches imported from Europe.
   In this trade war, the Japanese auto industry, which has a higher proportion of light trucks, also suffered losses as light trucks need to pay more tariffs. In order to circumvent sanctions, Japanese auto companies such as Toyota and Isuzu deliberately drilled policy loopholes and began investing in factories in the United States to assemble auto parts. Because according to the US tariff policy, imported cars and their parts are subject to tariffs. However, if the parts are assembled in the United States, there is no import tax.
   Japan-US trade war
   key players: the United States, Japan
   trade weapons: automotive, electronics, motorcycles
   in the US government view, Japan is not a unruly trading partner in the 1980s. In 1987, Reagan, then president, imposed punitive tariffs on US $ 300 million worth of Japanese goods, including computers, power tools, and televisions. The Reagan administration claimed that it was a blow back on Japan’s breach of promise. Because according to the original agreement between the two countries, Japan should systematically open its domestic market to the entire U.S. industry and stop underpricing of US semiconductor computer chips. In addition, throughout the 1980s, Japanese cars were subject to high tariffs.
   Japan chose not to fight back, and Minister of Trade, Industry and Trade, Motoichi Tamura said: “In order to avoid greater losses to the global free trade system, the Japanese government has decided not to take any retaliatory measures.” Both Zhou and Ethan Harris believe that the current tariff policy has not slowed the US trade deficit. Although Japanese car sales in the US market fell by 3%, American consumers are also suffering losses. In 1984 alone, they overpaid $ 53 billion for import duties on various commodities.
   Timber Trade Dispute
   key players: the United States, Canada
   trade weapons: soft wood (pine, cedar, fir)
   In the US and Canadian timber markets, the pricing mechanisms for timber in the two countries are different. Canadian timber is mainly mined on public land, so its government can control the market price of timber; in the United States, timber is mainly mined on private land, which means that its prices are mainly driven by the market. This difference directly leads to fierce contradictions in the timber trade between the United States and Canada. In 1982, the United States accused the Canadian government of imposing government subsidies on its softwood, contrary to the principle of fair competition. As a result, the US-Canada timber countervailing trade dispute has officially begun.
   By 2018, the Canadian government will have to pay hundreds of millions of dollars in softwood tariffs, and American consumers will not be able to “stand alone.” When the construction industry in the United States boomed, the price of its cork also rose, breaking the record high. According to US media reports on the timber industry, as of 2018, western Canada’s timber costs have soared by about 40%.
   Banana trade dispute
   key players: the United States, the European Union, Latin America
   trade weapons: bananas, European luxury
   the United States only Hawaii and Florida rich bananas, but the US company was in control of most of the banana farms in Latin America. In 1993, the European Union imposed high tariffs on fruits imported from Latin American countries, and deliberately took care of banana exporters from the former British and French colonies in the Caribbean. The United States filed a complaint with the WTO. In retaliation, the United States has also imposed tariff sanctions on goods such as French women’s bags, British linen and Danish ham.
   After eight rounds of difficult economic and trade negotiations, the EU finally agreed in 2009 to gradually reduce tariffs until its abolition. In 2012, the US-European banana trade dispute finally ended. In response, US Secretary of State Madeleine Albright when he grumble: “I never thought I’d waste so much time on the banana.”
   Trade War
   main participants: the United States, the European Union
   trade weapons: iron and steel ,Tangerine
   In 2002, in order to reinvigorate the domestic steel industry, the Bush administration announced the imposition of tariffs ranging from 8% to 30% on a variety of imported steels for a period of three years. Canada, Mexico and the United States belong to the North American Free Trade Area and are exempt from tax increases. However, the European Union was the largest source of steel imports to the United States at the time and suffered the most damage. The European Union immediately introduced countermeasures, announcing retaliatory duties on citrus and American cars in Florida. At the same time, the EU appealed to the WTO, which eventually ruled that the United States violated trade rules. In December 2003, President Bush announced the lifting of tariffs on imported steel for 18 months. This round of the trade war came to an end.
   Most economists see this as a shock to the U.S. economy as it raises steel prices. According to the Peterson Institute of International Economics, this round of the trade war also lost 26,000 jobs in the downstream steel industry. However, some analysts believe that the employment of the iron and steel industry is not entirely without growth, and in the middle and late stages of the trade war, due to the sharp rise in steel prices, the profits of the US steel industry also increased slightly.