Banana War To Trump Tariffs, A Brief History Of Trade Wars

Roughly 19 minutes into his speech, Trump was handed a rectangular board with a list of countries and regions and the tariffs they charged on America. Also mentioned were the reciprocal tariffs the US would charge henceforth. But it wasn't the first time a country took such a measure.

Over the last century, global powers have often used tariffs -- as an economic weapon and a bargaining tool.

Here's a brief history of tariff wars:

The Corn Laws (1815-1846)

Following the Napoleonic Wars, Britain enacted the Corn Laws in 1815 to protect its domestic agriculture by imposing high tariffs on imported grain. Landowners benefited from the Corn Laws, but it caused widespread hardship among the working class. The Anti-Corn Law League, led by Richard Cobden and John Bright, successfully mobilised public opinion against the tariffs.

The Méline Tariff (1892)

French Prime Minister Jules Méline introduced the Méline Tariff in 1892 to shield the country's agriculture and industry from foreign competition. The tariff increased levies on imported grain, resulting in higher prices for domestic farmers while making food more expensive for consumers.

The Smoot-Hawley Tariffs (1930)

During the Great Depression, President Herbert Hoover signed the Smoot-Hawley Act in June 1930. The act, intended to help American farmers, increased duties on a wide range of goods. The move prompted retaliatory measures from countries such as Canada, France, and Spain, leading to a sharp decline in global trade.

The Anglo-Irish Trade War (1932-1938)

Tensions between Britain and Ireland escalated in 1932 over unpaid land annuities. Britain put high tariffs on Irish agricultural exports, especially cattle, causing a significant hit to Ireland's economy. Ireland retaliated with duties on British coal and goods. The six-year dispute strained trade and worsened economic hardships. Later, a 1938 settlement restored trade relations.

The Chicken War (1960s)

American chicken production skyrocketed after World War II and flooded the European markets with cheap poultry. European farmers, struggling to compete, urged their governments for protection. In response, the European Economic Community (EEC) imposed tariffs on US poultry imports in 1962.

The Lumber War with Canada (1982-Present)

The US-Canada softwood lumber dispute has been on for over four decades. America claims that Canada's government-controlled pricing system was an unfair subsidy. This disagreement has led to numerous tariffs and retaliatory measures, affecting trade relations between the two countries.

The US-Japan Auto Tariffs (1987)

President Ronald Reagan imposed 100% tariffs in 1987 on $300 million worth of Japanese goods, primarily targeting the automotive sector. This move aimed to penalise Japan for failing to comply with a semiconductor trade agreement designed to increase US companies' access to the Japanese market.

The Banana War (1993-2012)

In 1993, the European Union put tariffs on Latin American bananas, effectively favouring producers from its former colonies in the Caribbean and Africa. The US challenged the EU's actions at the World Trade Organization (WTO) multiple times, securing favourable rulings each time. When the EU refused to lift the restrictions, the US retaliated by imposing tariffs on European luxury goods, including Scottish cashmere and French cheese. This trade dispute, dubbed the "Banana War," dragged on for nearly two decades and ended in 2012.

The Steel War with Europe (2002)

President George W. Bush imposed tariffs ranging from 8% to 30% on imported steel in 2002 to protect the struggling US steel industry. In response, the EU threatened tariffs on $2.2 billion worth of American goods, prompting Bush to lift the tariffs in 2003.

Trump's Trade War (2018)

In his first term, Donald Trump imposed broad tariffs on solar panels and washing machines, followed by targeted tariffs on Chinese imports. In retaliation, China imposed tariffs on American agricultural products.