US China Trade War & a Brief History of Trade Wars – 1900 until Present

Global trade has been increasingly vilified over a past 5 years from a tellurian leaders to a apart rising markets. This critique comes with many unflattering labels: from isolationism to protectionism to nationalism. All are possibly approach outcome or unavoidable effect of a same preoccupying faith that trade is in some approach undermining a health of an particular economy to advantage a many.

Yet, story does not bear out this scourge. While there are positively durations of composition and bouts of mercantile underperformance depending on a cycles and domestic circumstance, a long-term trend marches tightly towards common growth.

Trade War Events 1900 – Present

US China Trade War amp; a Brief History of Trade Wars – 1900 until Present

In this report, we demeanour during some of a pivotal events that have promoted and stymying tellurian trade from 1900 to the latest US China Trade War. From World Wars to multi-national trade deals to financial crises, a universe winds a approach towards an inevitable, common expansion. The auspicious winds can be totalled in a volume of sum exports recorded, a strength of tellurian enlargement and a value of a sum financial assets.

Below, we mangle this far-reaching operation of story into 4 singular periods. The some-more new a duration a shorter a spans lonesome as a ultimate change of a events in this duration are still uncertain. We separate this sum duration into durations of 1900 to 1950; 1951 to 1900; 1991 to 2007; and 2008 to benefaction (2018).

Trade War Events 1900 – 1950

US China Trade War amp; a Brief History of Trade Wars – 1900 until Present

History 1900 to 1950: The initial half of a 20th century was one of drop and rebirth. Two universe wars were waged with a ‘Great Depression’ in between. After a mercantile blight, however, efforts to forge trade pacts in sequence to equivocate destiny tellurian wars helped catalyze trade to levels formerly unexperienced.

Trade War Events 1951 – 1990

US China Trade War amp; a Brief History of Trade Wars – 1900 until Present

History 1951 to 1990: Following a duration of well-developed enlargement in recovery, an huge difference was non-stop in domestic creeds translating into an well-developed weight on growth. The Cold War array communism contra a entrepreneur democracy. Through this prolonged standoff, a series of trade disputes arose by those directly participating in a ‘cold’ rendezvous and those attempting to sojourn neutral. Yet, by this same period, vicious family started to emerge embody a seeding for a European Single Market, a US-Canada Free Trade Agreement and a lapse of Chinese-Japanese tactful relations.

Trade War Events 1991 – 2007

US China Trade War amp; a Brief History of Trade Wars – 1900 until Present

History 1991 to 2007: Through a 1990’s and a bulk of a 2000’s, enlargement accelerated sharply. In a issue of a Cold War, family softened rapidly. The foundations of a European Union solidified, a series of colonial territories were returned to their prior tenure and dissimilar mercantile and financial booms arose (like a Dot-com and Housing events heading adult to 2000 and 2006 peaks). That fast enlargement would also beget sensitivity and strident financial problems with Asian, Dot-com and Great Financial crises unfolding.

Trade War Events 2008 – US China Trade War

US China Trade War amp; a Brief History of Trade Wars – 1900 until Present

History 2008 to Present (2018): Starting off this duration with a many unpleasant and far-reaching widespread financial and mercantile predicament given a Great Depression, ruptures would form in family though so too would tellurian executive banks combine in sequence to deflect off an violent drop of a world’s foundations. It is by this many new duration interestingly adequate that we find a proviso of considerable enlargement prompt pithy durations of protectionism as economies quarrel to accelerate their assuage though important enlargement during a responsibility of trade relationships.


For a improved partial of a final century, efforts have been done globally to liberalize trade in preference of clever mercantile growth. While swell has come in disproportionate fits and spurts, enlargement has indeed come. But a cost of pronounced mercantile swell might be commencement to show, with several of a globe’s vital trade family (NAFTA, TPP, and even a European Union itself) entrance underneath approach glow and questions about their longevity.

The latest bout, a US China trade war, might eventually infer to be another stepping mill on a trail to deeper tellurian trade formation that’s been a pushing force for grown and building economies comparison given World War II. But a duration of annoy might be in a evident future; even story shows that a trail to trade liberalization hasn’t been a true line.

— Compiled by John Kicklighter, Chief Strategist, Renee Mu, Currency Analyst, Ilya Spivak, Senior Currency Strategist, and Christopher Vecchio, CFA, Senior Currency Strategist

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