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U.S. Trade Debates: Select Disputes and Actions (CRS Report for Congress)

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Release Date Revised Aug. 9, 2024
Report Number IF10958
Report Type In Focus
Authors Andres B. Schwarzenberg
Source Agency Congressional Research Service
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Summary:

During the Trump Administration, the United States and some of its major trading partners engaged in a contentious “war” of words over trade—one that tipped over into action in 2018, mostly in the form of increased tariffs. The tariffs imposed by the United States, combined with retaliatory measures adopted by other countries (particularly with respect to China), reportedly continue to have noticeable effects on trade flows and U.S. firms. To date, several disputes related to these actions have not been fully resolved; some reached panel decisions finding the tariffs inconsistent with World Trade Organization (WTO) obligations. While the scale and scope of these unilateral U.S. tariff increases are unprecedented in modern times, tensions and irritants in trade relations are not uncommon. During the last 100 years, the United States has been involved in a number of trade disputes. Per the WTO, as of July 2024, the United States has been involved in 283 dispute cases with 43 WTO members (addressed through the WTO dispute settlement system since 1995), either as a complainant or a respondent. Most disputes are settled, or when unresolved are contained or defused through bilateral and multilateral negotiations. Since the early 20th century, one dispute has resulted in a worldwide tit-for-tat escalation of tariffs: the trade dispute ignited by the U.S. “Smoot-Hawley” Tariff Act of 1930.
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