From Tariffs to Tensions: 5 Countries Caught in U.S. Trade Wars

TEMPO.CO, Jakarta -  Trade wars have long been a feature of global economic relations. The United States, under various administrations, particularly during Donald Trump’s presidency, has adopted protectionist policies that have sparked trade tensions with numerous countries.

Tariffs and trade sanctions have frequently been used as instruments to pressure other nations into aligning with U.S. interests.

The U.S. is widely recognized for its assertive and, at times, aggressive approach in managing trade relations with its partners.

According to sources from Aljazeera and El Pais, here are five countries that have been involved in trade conflicts with the U.S.:

1. Trade Tariff War Between the U.S. and China

Trade tensions between the U.S. and China peaked when Trump imposed high tariffs on imported Chinese products. The main trigger was the U.S.'s accusation against China for engaging in unfair trade practices, such as massive subsidies for domestic industries and alleged intellectual property theft.

In 2018, the US imposed a 25% tariff on more than 800 Chinese products, including steel and aluminum. Beijing retaliated with similar tariffs on US agricultural and technology products, such as soybeans and aircraft.

The imposition of these tariffs has caused American companies that rely on the Chinese supply chain to face rising production costs.

This conflict has shaken the global supply chain, slowed the economic growth of both countries, and forced companies to seek alternative markets or sources of raw materials.

2. Lumber and Steel Disputes with Canada

Despite being known as close allies, the trade relations between the U.S. and Canada have been disrupted by tariff policies. Previously, in 1982, a conflict occurred between the U.S. and Canada, which was resolved after the introduction of the North American Free Trade Area (NAFTA) in 1994.

In 2018, the U.S. accused Canada of offering unfair subsidies to its lumber sector, prompting the imposition of steep tariffs on softwood lumber imports. Citing national security concerns, President Trump also levied a 25% tariff on Canadian steel and a 10% tariff on aluminum.

The decision sparked a strong response from Canada, which countered with its own tariffs on a range of U.S. goods, including alcoholic beverages and agricultural products. These retaliatory measures eventually led to the renegotiation of NAFTA, resulting in the formation of the United States-Mexico-Canada Agreement (USMCA).

3. Automotive Disputes with Japan

In the 1980s, the Japanese automotive industry dominated the US market, threatening domestic car manufacturers such as General Motors and Ford. The US government accused Japan of dumping and forced the Land of the Rising Sun to voluntarily limit car exports to the U.S.

In 1987, President Ronald Reagan imposed a 100% tariff on Japanese automotive products after Tokyo was deemed to have failed to open its market to U.S. semiconductors. This conflict affected the yen's value, reduced Japanese exports, and led to a long stagnation in the Japanese economy in the 1990s.

Eventually, Japan changed its strategy by establishing factories in the U.S. to avoid tariffs and meet domestic demand. Toyota, Honda, and Nissan began producing cars directly in America, strengthening their position in the global market.

4. The "Chicken War," Steel Tariffs, and Banana Dispute with the EU

Trade tensions between the U.S. and the European Union have spanned decades, involving disputes over both agricultural and industrial goods.

One of the earliest confrontations, dubbed the “Chicken War,” began in the 1960s when Europe increased tariffs on U.S. poultry.

Another dispute arose in 1993 when the EU gave preferential banana import access to its former colonies, disadvantaging U.S.-based companies sourcing from Latin America. The U.S. filed a complaint with the WTO and responded with tariffs on European goods.

Further clashes included disputes over aircraft subsidies for Boeing and Airbus, as well as tariffs on wine, cheese, and other goods. In 2002, President George W. Bush slapped tariffs on European steel imports.

The EU retaliated with threats to impose levies on iconic U.S. exports like Harley-Davidson motorcycles and Florida oranges, adding further strain to transatlantic trade relations.

5. Automotive and Steel Disputes with South Korea

Although the U.S. and South Korea signed the Korea-U.S. Free Trade Agreement (KORUS FTA) in 2012, the Trump administration pushed for a renegotiation in 2018, citing a trade imbalance favoring South Korea.

That year, the U.S. imposed tariffs on Korean steel, prompting Seoul to revise the agreement. South Korea agreed to limit steel exports and increase imports of U.S. vehicles to maintain favorable trade terms.

Given South Korea’s reliance on the U.S. market for its automotive industry, these adjustments were seen as necessary to maintain trade stability under the revised KORUS FTA.

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