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Calm Down Boys, tariff war is just a negotiation tactics , not a long-term economic strategies.
So yes, Trump-era tariff war of 2018-2019, suggests that these threats are largely negotiation tactics rather than long-term economic strategies. History has shown that tariffs have been used as a bargaining chip to secure better trade deals, rather than as a permanent protectionist measure. The Playbook from the last trade war (2018-2019): The previous tariff war under the Trump administration followed a familiar pattern: bold tariff announcements, immediate market reactions, counter-tariffs, intense negotiations, and eventual rollbacks. * Canada & Mexico – The 25% Tariff Bluff: In 2018, the U.S. imposed 25% tariffs on Steel imports and 10% tariffs on Aluminum imports, from Canada and Mexico, citing national security concerns. However, in 2019, after renegotiating NAFTA into the USMCA (United States-Mexico-Canada Agreement), Trump removed the tariffs, proving they were a temporary pressure tactic. * China – The 10% Tariff Gambit: A 10% tariff was imposed on $300bn worth of Chinese imports in 2019, escalating the US-China trade war. However, as part of the “Phase One” trade deal in early 2020, some tariffs were partially rolled back in exchange of a commitment from China to buy more U.S. products. * Europe & Auto Tariffs – A threat that never realized: Trump frequently threatened a 25% tariff on European cars, but it never materialized. Instead, negotiations led to agreements on other trade concessions, showing that tariffs were more about leverage than actual implementation. https://preview.redd.it/pli1xb2tg2je1.png?width=1042&format=png&auto=webp&s=c153e5c96bcb395212b46b7be9b0c010d6c65a0a2
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