Trump's heavy tariffs - an oft-used tactic with uncertain effects

THE Trump administration announced last week that it would impose heavy tariffs on imported washing machines and solar panels. They will be set at between 20 and 50 per cent on washing machines and at 30 per cent on solar equipment.

Some pundits suggest that these moves are part of President Donald Trump's efforts to promote his economic nationalist agenda. But protectionism is a tool that has been employed by all his predecessors, including those who were lauded as free traders. Under Democratic President Bill Clinton and Republican President George W. Bush, the US Commerce Department moved to impose punitive tariffs on steel imports. Democratic President Barack Obama slapped a stiff 35 per cent tariff on Chinese tyres. And in 2012 and 2014, he hit the Chinese solar industry with tariffs even higher than those just announced by President Trump.

In these cases, like in the current one involving solar panels and washing machines, the White House responded to pressure from American industries complaining of unfair trade competition from foreign companies and who use their political power to force the hand of Washington.