Since the creation of the World Trade Organization (WTO) in 1995, tariff wars have been exceptional episodes, although some have prolonged for years and have had a significant impact on the global economy. Next, there is a chronological review of some of the most relevant commercial conflicts of the last decades.
1. Conflict between the US and the EU by the meat treated with hormones (1989 – 2012)
In 1989, the US imposed 100 % tariffs on several European products in response to the EU prohibition on meat treated with hormones, which affected US exports for a value of 100 million dollars. This conflict was resolved in 2012, when the EU allowed to increase the import quota of American and Canadian meat, although it maintained the prohibition on products treated with hormones.
2. The battle for steel (1992 – 2003)
Since 1992, the US implemented temporary tariffs of up to 58 % to steel imports from several countries, arguing that subsidies distorted the price of the product. Despite several reductions and modifications, in 2002 the rates were increased again and extended to China and Russia. After multiple complaints before the WTO, President George W. Bush withdrew most of these rates in 2003.
3. BANANO WAR BETWEEN THE EU AND LATIN AMERICA (1993 – 2012)
One of the longer conflicts of the WTO, initiated in 1993 when the EU granted preferential treatment to ACP countries (Africa, Caribbean and Pacific) to the detriment of Latin America. In 2012, after almost 20 years of disputes, an agreement was signed that ended the banana war.
4. Conflict between the US and EU by Boeing and Airbus (2004 – 2021)
The tensions between the US and Europe for the subsidies to Boeing and Airbus caused a tariff war that affected even products outside the aeronautical sector. The WTO determined in 2019 that the EU had illegally subsidized Airbus, which allowed the US to apply taxes. In 2020, it was also recognized that Boeing had received illegal aid. The truce arrived in June 2021, with a five -year agreement.
5. Commercial War between the US, China and the EU (2018 – 2021)
During the Trump administration, the US imposed 25 % tariffs on steel and 10 % to aluminum, mainly affecting China and EU. In addition, additional rates were applied to Chinese technological and industrial products, for a value of 370,000 million dollars annually. In 2020, Washington and Beijing signed an agreement that established an increase in US imports, while in 2021 a tariff truce between the US and the EU was reached.