A History of Tariff Wars: Economic Weapons and Bargaining Tools
During a speech, former U.S. President Donald Trump was handed a rectangular board listing countries and regions along with their tariffs on American goods—as well as the reciprocal tariffs the U.S. would impose in response. This was hardly the first time a nation had wielded tariffs as both an economic weapon and a bargaining tool.
Over the past century, global powers have repeatedly turned to tariffs to protect domestic industries, retaliate against trade partners, and gain leverage in negotiations. Below is a brief history of some of the most notable tariff conflicts.
The Corn Laws (1815-1846)
Following the Napoleonic Wars, Britain enacted the Corn Laws in 1815, imposing steep tariffs on imported grain to shield domestic agriculture. While the laws benefited wealthy landowners, they drove up food prices, exacerbating poverty among the working class. The Anti-Corn Law League, led by reformers Richard Cobden and John Bright, successfully campaigned for their repeal in 1846, marking a shift toward free trade.
The Méline Tariff (1892)
French Prime Minister Jules Méline introduced protectionist tariffs in 1892 to defend the nation’s agriculture and industry from foreign competition. The policy raised duties on imported grain, boosting profits for French farmers but increasing food costs for consumers.
The Smoot-Hawley Tariffs (1930)
At the height of the Great Depression, President Herbert Hoover signed the Smoot-Hawley Tariff Act in June 1930, raising duties on over 20,000 imported goods to protect American farmers. The move backfired, triggering retaliatory tariffs from Canada, France, Spain, and others, which worsened the global trade collapse.
The Anglo-Irish Trade War (1932-1938)
A dispute over unpaid land annuities led Britain to impose crippling tariffs on Irish cattle exports in 1932. Ireland retaliated with duties on British coal and manufactured goods, severely damaging both economies. The six-year standoff ended in 1938 with a negotiated settlement.
The Chicken War (1960s)
Post-WWII, U.S. poultry producers flooded European markets with cheap chicken, undercutting local farmers. In response, the European Economic Community (EEC) imposed tariffs on American poultry in 1962, sparking a trade rift that required diplomatic intervention.
The U.S.-Canada Lumber Dispute (1982-Present)
One of the longest-running trade conflicts, the softwood lumber dispute, stems from U.S. claims that Canada unfairly subsidizes its timber industry. Over four decades, the feud has led to repeated tariffs, legal battles, and tense negotiations.
U.S.-Japan Auto Tariffs (1987)
Frustrated by Japan’s failure to uphold a semiconductor trade deal, President Ronald Reagan imposed 100% tariffs on $300 million worth of Japanese goods, including electronics and automobiles. The move pressured Japan into concessions.
The Banana War (1993-2012)
The European Union’s preferential tariffs on bananas from former colonies in Africa and the Caribbean angered Latin American producers and the U.S., which challenged the policy at the World Trade Organization (WTO). After multiple rulings against the EU, the U.S. retaliated with tariffs on European luxury goods, including Scottish cashmere and French cheese. The dispute lasted nearly 20 years before resolving in 2012.
The Steel War with Europe (2002)
To aid struggling domestic steelmakers, President George W. Bush imposed tariffs of 8%-30% on imported steel in 2002. The EU threatened counter-tariffs on $2.2 billion in U.S. goods, forcing Bush to repeal the measures in 2003.
Trump’s Trade Wars (2018)
President Donald Trump launched sweeping tariffs on solar panels, washing machines, aluminum, and steel, followed by targeted duties on $250 billion worth of Chinese goods. China retaliated with tariffs on U.S. agricultural exports, hurting American farmers and escalating tensions.
From 19th-century grain disputes to modern tech and manufacturing clashes, tariffs have long been a double-edged sword—protecting domestic industries while risking economic retaliation. As history shows, trade wars rarely have clear winners but often leave lasting economic scars.
