Trump’s Tariffs Curtailed Global Trade, Study Confirms
New economic data reveals that former President Donald Trump’s aggressive tariff policies significantly reduced international trade, raising costs for consumers and businesses. A Peterson Institute for International Economics (PIIE) analysis found that tariffs imposed between 2018 and 2020 on China, the EU, and other partners led to lower trade volumes, retaliatory measures, and minimal gains for U.S. industries.
The Tariff War: Key Events
Trump defended tariffs as a way to protect U.S. jobs and counter unfair trade practices, particularly by China. His administration imposed levies on over $300 billion in Chinese goods, along with steel and aluminum tariffs on allies like Canada and the EU. While some domestic industries benefited, critics warned of supply chain disruptions—a prediction now backed by data.
The PIIE report shows:
– U.S. imports of tariffed Chinese goods fell by 25%
– American exports (like soybeans and autos) dropped due to retaliatory tariffs
– The trade deficit barely shrank, contradicting Trump’s core goal
Economic Impact: Who Won and Who Lost?
While steel and aluminum producers saw short-term gains, broader costs hit consumers and farmers hardest:
– Households paid $831 more annually due to higher prices (Federal Reserve Bank of New York)
– U.S. farmers lost $27 billion in exports, prompting a federal bailout
– Manufacturing jobs grew minimally, stifled by expensive imported materials
Global Shifts and Long-Term Consequences
Trump’s policies reshaped trade alliances:
– China and the EU strengthened ties, bypassing the U.S.
– Vietnam and Mexico gained as supply chains shifted
– The U.S. lost influence in Asia after exiting the Trans-Pacific Partnership (TPP)
Though Biden kept many tariffs, his focus shifted to strategic partnerships (e.g., CHIPS Act) rather than broad levies.
Key Takeaways for Trade Policy
The PIIE findings highlight:
1. Tariffs often hurt more than help, raising costs without fixing trade imbalances.
2. Global supply chains adapt, leaving uncoordinated policies at a disadvantage.
3. Future strategies must balance protectionism with cooperation to avoid economic fallout.
In a connected world, trade wars rarely produce clear winners—only lasting challenges.
— NextMinuteNews
