Major trade wars since 19th century

Published April 9, 2025
US Trade Representative Jamieson Greer testifies during a hearing of the Senate’s finance committee about President Donald Trump’s trade policies, on Tuesday.—AFP
US Trade Representative Jamieson Greer testifies during a hearing of the Senate’s finance committee about President Donald Trump’s trade policies, on Tuesday.—AFP

PARIS: As the world reels from US President Donald Trump’s tariffs onslaught, here is a look back at some major trade wars since the 19th century:

19th century Opium Wars

In the mid-19th century, two conflicts over the opium trade, which became known as the Opium Wars, pitted China against the British Empire.

The first began in 1839, when Britain launched a military expedition to force China to open its market to Indian opium sold by British merchants. Britain won the clash in 1842, with success going beyond opium as China was forced to give up the region of Hong Kong, open five ports to world trade, and limit its customs tariffs to 5 per cent.

In the second Opium War, from 1856-1860, Britain allied with France, and again the imperial power came out on top, forcing China to open up eleven additional ports to foreign trade and maintain diplomatic relations with the West.

1890: McKinley offensive

In 1890, William McKinley — then a Republican lawmaker, later a US president — saw through a new law that slapped an average tariff of nearly 50pc on imports into America.

While the tax hike boosted the development of tinplate production in the US, for example, it also caused prices to soar. In elections that same year for the US House of Representatives, Republicans suffered big losses, losing their majority to the Democrats. Two years later, the incumbent Republic president was dumped by voters in favour of a Democrat.

McKinley’s unpopular law was repealed in 1894. He nevertheless went on to become US president in 1897. He was assassinated in 1901, months after winning a second term. Trump often mentions McKinley as inspiration to his protectionist policies.

1960s: Chicken war

In the early 1960s, France and Germany jointly decided to tax the import of US chicken, produced at industrial scale. The United States retaliated with taxes on a series of products, particularly on certain utility vehicles, which remain taxed to this day. The so-called Chicken War ran from 1961 to 1964.

1985: Pasta war

This dispute began in 1985 when president Ronald Reagan, in a bid to protect US industry, raised tariffs on pasta imports from Europe. Europe responded with taxes on US imports of nuts and lemons.

The standoff lasted nine months before the United States and the European Economic Community (EEC) — as the EU was then known — reached an agreement.

2002: Bush vs. EU

In 2002, US President George W. Bush imposed three-year surcharges of up to 30pc on 10 categories of products including flat-rolled steel, machine wires and welded tubes.

These measures, intended to boost the US steel industry, affected nearly 29pc of imports. The EU filed a complaint with the WTO and published a list of US products it threatened to tax by up to 100pc. At the end of 2003, Bush opted to lift the tariffs.

Published in Dawn, April 9th, 2025

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