The Impact of Retaliatory Tariffs on Agricultural and Food Trade
The era of trade liberalization ended abruptly in 2018 when the U.S. government decided to enact several waves of tariff increases against foreign trading partners. In response to these U.S. protectionist tariffs, several trading partners imposed retaliatory tariffs against products exported from the United States. These countermeasures increased the average tariff level from 7.5 percent to 23.5 percent for 6,341 products, covering about $124 billion (14.4 percent) of their pretariff level of trade with the United States, with the agricultural and food industry more affected by these policy changes than any other sector of the economy. Despite the devastating nature of this trade war, little is known about the full impact of these retaliatory tariffs on agricultural and food trade.