Exploring Tariff Pre-Trump- A Historical Overview of Trade Duties Prior to the Trump Administration
What was the Tariffs Before Trump?
The trade policies of the United States have been a topic of significant debate and analysis, especially since the election of Donald Trump in 2016. One aspect of this debate revolves around the tariffs that were in place before Trump’s presidency. Understanding the state of tariffs before Trump’s tenure can provide valuable context for evaluating the changes his administration implemented and the subsequent impact on the global economy.
Under the Obama administration, the United States maintained a relatively low level of tariffs compared to its historical averages. The average tariff rate in the United States was around 1.6% from 1947 to 2016, according to data from the World Bank. This period saw the implementation of the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), which aimed to reduce trade barriers and promote global economic growth.
During this time, the United States engaged in numerous trade agreements, such as the North American Free Trade Agreement (NAFTA) and the Trans-Pacific Partnership (TPP), which aimed to further reduce tariffs and promote trade between participating countries. While these agreements did lead to some increases in tariffs, the overall rate remained relatively low.
One notable exception to the low tariff rates during this period was the imposition of tariffs on steel and aluminum imports in 2018. This move, often referred to as “Section 232,” was based on national security concerns and resulted in tariffs of 25% on steel and 10% on aluminum imports. However, these tariffs were not a significant departure from the low average rates of the time.
The situation changed significantly under President Trump, who adopted a more protectionist approach to trade. Trump’s administration argued that the previous low-tariff policies had allowed other countries to exploit the United States, leading to job losses and trade deficits. As a result, Trump initiated a series of tariffs on various goods, including steel, aluminum, and goods from China.
In 2018, Trump imposed tariffs of 25% on steel and 10% on aluminum imports, which were not only higher than the previous rates but also inconsistent with the WTO’s rules. These tariffs were followed by retaliatory measures from other countries, leading to a trade war that had a significant impact on global trade and economic growth.
In conclusion, the tariffs in the United States before Trump’s presidency were relatively low, with an average rate of around 1.6%. While there were some exceptions, such as the Section 232 tariffs, the overall trend was towards reducing trade barriers and promoting global economic growth. Trump’s administration marked a significant shift towards protectionism, which has had profound implications for the global economy and the future of trade policies.
