Protectionism and Its Effects on Global Trade

Running Head: PROTECTIONISM
PROTECTIONISM
Name
Professor
Institution
Course
Date

PROTECTIONISM 2
Introduction
In 2018, President Donald Trump imposed tariffs and a series of rations on designated
steel and aluminum imports from several republics under the extension act of 1962. The
president also applied tariffs on a series of products imported from China to retaliate to Chinas
negation to change rational property rights (Xiong & Beghin, 2017). The president also
warned that he would enforce tariffs on the steadiness of US imports from China if the country
does not contrivance the list of changes to its intellectual property rights, programs, and
practices. To counteract the tariffs, China threatened to retaliate. The escalation of tariffs by the
US government had an impact on the balance of the USA trading partners, the USA producers
and consumers too. Some of the effects faced by the producers are positive, while others are
negative. The tariffs had imposed a high cost to consumers; for example, the USA manufacturers
and households had to pay increased tariffs (Irwin, 2017).
The president applied several rates on imports of designated goods which were convened
by the government as lists 1, 2, and 3. The imports were from China, and the tariffs were
imposed with regard to Chinas denial to change the retaliatory rational property rights (Mehling,
Van, Das, & Droege, 2018). After the imposition of each newfangled set of tariffs, China
declared its new list of US goods that would be substance to the retributive obligations imposed
by the Chinese government. As of December 2018, the new tariffs had affected approximately
$250 billion US dollar imports on the foreign tariffs which were under retaliation. The newly
imposed tariffs had augmented the mean US tariff rate since March. The regular tariffs, on the
other hand, increased from 1.5 percent in May to 2.6 percent in October the same year (Evenett
& Fritz, 2015).

PROTECTIONISM 3
There were several adverse impacts as a result of the rising tariffs in US exports. In
response to the US increased tariffs, China executed fresh tariffs on US exports in April (Rose
& Reeves, 2017). Mexico and turkey imposed new tariffs on US imports, and due to the
rolling application, the worth of the retaliation tariffs evaluated on the US on the exports from
the United States continued going up. The retaliatory tariffs had adverse effects if they slowed
the growth of US goods export.
Retaliatory Measures Taken By China
Trump's imposition of excess tariffs on china imported goods to us led to trade war amid
the two countries. After the imposition of each of these new tariffs, the Chinese government
publicized its list of commodities that were subject to tit-for-tat duties from china when imported
to the Chinese Kingdom (Neumayer, 2017). The new tariffs affected the US imports by large
amounts since the retaliatory tariffs in China were being applied to the US imported products.
The tariffs affected $165 billion US imports coming from China. The adverse effects of rising
tariffs in US exports were evident. The new retaliatory tariffs on US products made China
implement new tariffs followed by Canada and Russia. China imposed new tariffs in response to
section 301 tariffs. The latter led to a decrease in US exports (Grundke & Moser, 2019).
China imposed tariffs on all goods imported from the US by 25% where they were lower than
that in the past. The country also increased the border nuisance costs for working in the Chinese
marketplace on the value of the commodities imported from the United States of America. The
trade war imposed between the two countries combined all scenarios into a unit; steel and