Earlier this year President Donald Trump imposed tariffs on solar panels and washing machines, followed by tariffs on steel and aluminum. While these measures were poorly received by many economists and could actually cause net harm to the U.S. economy, some Democrats, notably those in Rust Belt states, voiced support for the tariffs on steel and aluminum imports.
A larger fear has been that prolonged tariffs could even result in a trade war. Worse still trade wars can even lead nations to an actual war. Take this test and see if you understand the complex history of trade wars.
Before there was a United States of America the Stamp Act of 1765 was an Act of Parliament of Great Britain that imposed a direct tax on the colonies of British America. The purpose of the tax was to help pay for troops stationed in North America after the British victory in the Seven Years' War.
The Tea Act of 1773 was an Act of the Parliament of Great Britain that was supposed to convince the American colonists to purchase British East India Company tea on which the Townshend duties were paid. This resulted in the now infamous political protest by the Sons of Liberty known as the Boston Tea Party.
Until the World Trade Organization (WTO) was created in 1994, international trade was managed through a legal agreement.
President Donald Trump has called for tariffs on imported steel, but this is far from the first time that a President has tried to protect steel workers in America. In his first term President George W. Bush imposed tariffs up to 30 percent on certain steel products.