The US-China Tariff Battle: A Timeline of Trade Tensions Since Trump’s First Term
The trade war between the United States and China, initiated during Donald Trump’s first term, has been one of the most significant economic conflicts of the 21st century. From tit-for-tat tariffs to retaliatory measures, both countries have engaged in a complex and escalating series of trade disputes. This blog post takes a detailed look at the key moments of this trade spat, its impact on global trade, and the economic ramifications that continue to shape international relations today.
Early Tensions: Trump’s Tariff War Begins
The US-China tariff saga officially kicked off shortly after Donald Trump assumed office. In 2017, President Trump’s administration made clear its intentions to tackle the U.S. trade deficit with China, citing unfair trade practices, intellectual property theft, and market access issues. Let’s break down the key moments during the early stages of the tariff war.
March 2017 – Trump Signs Executive Order on Tariff Enforcement
In his first significant move on trade, President Trump signed an executive order aimed at tightening tariff enforcement in anti-dumping cases. The goal was to address trade imbalances and level the playing field for U.S. industries facing unfair competition from foreign markets.
April 2017 – The 100-Day Trade Plan
During a meeting in Beijing, Trump and Chinese President Xi Jinping agreed to a 100-day plan aimed at reducing the U.S. trade deficit. However, this deal failed to achieve tangible results by the deadline, with tensions rising over intellectual property theft and market access.
August 2017 – Investigation into China’s Intellectual Property Practices
Trump launched an investigation into China’s alleged theft of intellectual property, a practice that U.S. officials claimed cost the American economy up to $600 billion annually. This investigation laid the groundwork for subsequent tariffs on Chinese goods.
The First Round of Tariffs: Retaliation Begins
In early 2018, the U.S. ramped up its tariff threats, leading to immediate retaliatory actions by China. The tit-for-tat tariffs escalated quickly, setting the stage for a trade war that would last years.
January 2018 – U.S. Tariffs on Solar Panels
The first major tariff action took place when the U.S. imposed a 30% tariff on imported solar panels, a large percentage of which came from China. The tariffs were part of Trump’s broader efforts to protect U.S. manufacturing jobs, particularly in industries like renewable energy.
April 2018 – China Hits Back
In response, China imposed tariffs on U.S. goods worth about $3 billion, including agricultural products like fruit, nuts, wine, and pork. The Chinese retaliation marked the beginning of a back-and-forth escalation, with both sides introducing additional tariffs on various goods.
July 2018 – The U.S. Slaps 25% Tariffs on $50 Billion of Chinese Goods
Trump followed through on his promise to impose 25% tariffs on Chinese products worth about $50 billion, targeting industries such as aerospace, machinery, and medical devices. In retaliation, China imposed a matching set of tariffs on key U.S. exports, including soybeans, chemicals, and automobiles.
The Escalation: A Full-Blown Trade War
By mid-2018, the US-China trade war was in full swing. The U.S. and China continued to impose additional rounds of tariffs on one another, each move escalating the tensions further.
June-August 2018 – The Proliferation of Tariffs
Both countries introduced multiple rounds of tariffs on a wide range of goods. The U.S. imposed 10% tariffs on $200 billion worth of Chinese goods in September 2018, with the plan to increase it to 25% by January 1, 2019. China retaliated with its own tariffs on U.S. imports, bringing the total value of goods affected by tariffs on both sides to over $500 billion.
December 2018 – Failed Negotiations and Further Escalation
While negotiations stalled in December 2018, Trump raised tariffs from 10% to 25% on $200 billion worth of Chinese imports, further intensifying the trade war. The failure of trade talks left both sides embroiled in a prolonged dispute with no clear resolution in sight.
The Phase One Deal and Continued Tensions
As the trade war dragged on, both sides sought a way to ease the economic pain. In early 2020, a breakthrough came with the Phase One trade deal, but its long-term impact was limited.
January 2020 – Phase One Deal
The U.S. and China signed a Phase One trade deal that saw China agree to purchase an additional $200 billion worth of U.S. goods and services over the next two years. While the deal was hailed as a win for Trump’s administration, subsequent reports showed that China had failed to meet its purchase targets, sparking doubts about the effectiveness of the agreement.
May 2019 – U.S. Blacklists Huawei
In a major escalation, the U.S. government placed Chinese telecom giant Huawei on its Entity List, restricting its access to U.S. technology and components. This action added fuel to the fire, as it signaled growing concerns about China’s technological influence and national security risks.
Biden’s Presidency: Tariffs Continue Amid Strategic Shifts
Though Joe Biden took office in January 2021, the legacy of Trump’s tariffs continues to shape the US-China trade landscape. Biden has largely retained the tariffs and imposed new restrictions on Chinese tech firms.
October 2022 – Biden’s Semiconductor Restrictions
Biden imposed sweeping restrictions on selling semiconductors and chipmaking equipment to China, citing national security concerns. These measures were seen as a strategic attempt to curb China’s technological advancement, particularly in areas like artificial intelligence and military technology.
The Latest Developments: Escalation Under Biden and Trump
As of 2024, both sides continue to wield tariffs as economic weapons, with recent developments only escalating the trade tensions.
February 2024 – Trump’s Tariff Threat
On the campaign trail, Donald Trump vowed to impose tariffs of at least 60% on all Chinese imports if he wins a second term. This threat marks a dramatic shift in U.S.-China trade policy and signals an intensification of tensions if Trump returns to office.
May 2024 – Biden Raises Tariffs
In another round of tariff increases, President Biden raised tariffs on Chinese electric vehicles, solar panels, steel, aluminium, and medical equipment. These moves reflect ongoing tensions over trade imbalances and market access.
February 2025 – New 10% Tariffs on Chinese Imports
In February 2025, the U.S. imposed new 10% tariffs on all Chinese imports, to which China responded promptly with tariffs on key U.S. exports, including coal, liquefied natural gas, and agricultural machinery.
March 2025 – Further Escalation
In March 2025, the U.S. raised tariffs again, this time by another 10% on all Chinese goods, prompting further retaliatory measures from China, including tariffs on U.S. farm products like soybeans, pork, and beef.
Conclusion: The Future of US-China Trade Relations
The US-China tariff conflict, initiated under Trump, has now become a defining feature of both countries’ economic policies. As both nations continue to use tariffs as leverage in negotiations, the possibility of a protracted trade war looms large. The world watches as both sides make strategic moves that will shape global trade dynamics for years to come.
While tariffs have certainly played a role in reshaping trade relations, their long-term effectiveness in addressing the root causes of economic tensions between the U.S. and China remains to be seen.
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Photo credit: Pererson Institute for International Economics
