Knowledge Tree
2018-2019 US-China trade war
Also known as: 2018–2019 trade war, 2018–19 trade war, 2018-2019 trade war, 2018-2019 US-China trade war
Facts (14)
Sources
U.S. tariff outcomes dependent on trading partner responses dallasfed.org May 13, 2025 9 facts
claimChina was the only broadly impacted trade partner during the 2018–19 trade war.
claimU.S.-produced goods faced significantly higher tariffs abroad, particularly in emerging and developing countries, prior to the 2018–19 trade war.
claimThe 2018–19 trade war did not impose tariffs on traded services, which account for more than 80 percent of U.S. consumption spending and about 20 percent of U.S. imports.
claimThe U.S. tariffs imposed during the 2018–19 trade war targeted steel, aluminum, chips (integrated circuits), and semiconductors, and did not reach a 25-percentage-point increase.
accountDuring the 2018–19 trade war, the European Union implemented broad-based tariffs on a range of U.S.-produced goods across multiple industries, while India specifically targeted U.S. autos with significant tariff increases.
claimPrior to the 2018–19 trade war, the highest U.S. tariffs were predominantly in the textiles and agriculture sectors.
measurementBefore the 2018–19 trade war, U.S. tariffs were relatively stable and low, averaging about 2 percent on a trade-weighted basis.
claimEstimates suggest the overall impact of the 2018–19 trade war tariffs led to a negligible change in U.S. consumption.
claimDue to the North American Free Trade Agreement (NAFTA), updated to the USMCA in 2020, Canada and Mexico were largely exempt from the higher U.S. tariffs that existed prior to the 2018–19 trade war.
The price of protectionism: Understanding the economic tradeoffs of ... statestreet.com 4 facts
accountDuring the 2018-2019 US-China trade war, inflationary pressures were mitigated by a decline in consumer demand for goods subject to tariffs.
accountDuring the 2018-2019 trade war, the Chinese yuan depreciated significantly, illustrating the dynamic interplay between tariffs, trade policy, and market forces.
measurementUS equities, particularly large-cap stocks, experienced significant volatility during the 2018-2019 US-China trade war, with the S&P 500 losing 5 percent on key tariff announcement days.
claimInvestor concerns during the 2018-2019 US-China trade war centered on the potential for higher costs, weaker consumer demand, and disruptions to global supply chains.
History of tariffs in the United States - Wikipedia en.wikipedia.org 1 fact
measurementCaliendo and Parro found that the 2018–2019 trade war resulted in net welfare losses of -0.1%, which reduced consumption, wages, manufacturing exports, and aggregate welfare.