Trade policy of the United States in the context of "Machine tools"

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⭐ Core Definition: Trade policy of the United States

The regulation of foreign trade is constitutionally vested in the United States Congress. After the Great Depression, the country emerged as among the most significant global trade policy-makers, and it is now a partner to a number of international trade agreements, including the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). Gross U.S. assets held by foreigners were $16.3 trillion as of the end of 2006 (over 100% of GDP).

The United States is among the top three global importers and exporters. The country has trade relations with many other countries. Within that, the trade with Europe and Asia is predominant. To fulfill the demands of the industrial sector, the country has to import mineral oil and iron ore on a large scale. Machinery, cotton yarn, toys, mineral oil, lubricants, steel, tea, sugar, coffee, and many more items are traded. The country's export list includes food grains like wheat, corn, and soybeans, as well as aeroplanes, cars, computers, paper, and machine tools required for different industries. In 2016 United States current account balance was negative $469,400,000,000. U.S. manufacturers exported $1,365.31 billion in goods exports in 2019, with Canada, Mexico, China, Japan and the United Kingdom representing 35.44% of the export market.

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Trade policy of the United States in the context of Tariff in United States history

Tariffs have historically played a key role in the trade policy of the United States. Economic historian Douglas Irwin classifies U.S. tariff history into three periods: a revenue period (ca. 1790–1860), a restriction period (1861–1933) and a reciprocity period (from 1934 onwards). In the first period, from 1790 to 1860, average tariffs increased from 20 percent to 60 percent before declining again to 20 percent. From 1861 to 1933, which Irwin characterizes as the "restriction period", the average tariffs rose to 50 percent and remained at that level for several decades. From 1934 onwards, in the "reciprocity period", the average tariff declined substantially until it leveled off at 5 percent. Especially after 1942, the U.S. began to promote worldwide free trade. After the 2016 presidential election, the US increased trade protectionism.

According to Irwin, tariffs were intended to serve three primary purposes: "to raise revenue for the government, to restrict imports and protect domestic producers from foreign competition, and to reach reciprocity agreements that reduce trade barriers."

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LINKED FROM (PARENTS)
← Tariff in United States history ← History of tariffs in the United States
LINKS TO (CHILDREN)
Foreign trade → United States Congress → Great Depression → General Agreement on Tariffs and Trade → World Trade Organization → United States → Import → Export → Trade → Europe → Asia → Industrial sector → Mineral oil → Machinery → Toys → Lubricants → Tea → Sugar → Coffee → Wheat → Corn → Aeroplanes → Cars → Computers → Paper → Machine tools →