Comparing Trump's and Biden's Trade Policies

Trump's Protectionist Views

In his 2016 presidential campaign, former President Trump stood out for his unique stance on trade. While most other candidates advocated for free trade, Trump championed protectionist policies and tariffs. He expressed his dissatisfaction with how the US handled trade, particularly with Japan and the Middle East, and advocated for a stronger stance against countries he believed were taking advantage of the US.

Biden's Approach to Trade

President Biden has continued the trend of protectionist policies, recently imposing a new set of tariffs on China. These include a 25% tariff on certain goods such as steel, aluminum, batteries, and some medical products, a 50% tariff on semiconductors and solar cells, and a 100% tariff on electric vehicles.

Shift in Trade Policy

The focus of US trade policy has shifted significantly in recent years. Previously, free trade and low tariffs were seen as the best way to boost the global economy. However, both Trump and Biden have aimed to increase domestic production and create jobs for working-class Americans through their trade policies.

Differences in Trade Policy

While Trump and Biden agree on the overall objectives of trade policy, their specific policies differ. Biden's administration has placed a focus on equity and environmental issues. In contrast, Trump's 2017 agenda prioritized US strength, the economy, and protecting US sovereignty. Another significant difference lies in the extent and specifics of their tariffs.

Effects of Policies

The effectiveness of Trump's tariffs in helping US workers is debatable. While the unemployment rate in the manufacturing industry decreased slightly during his term, the US trade deficit increased. The tariffs did result in a small decrease in the trade deficit with China, but it has since risen again under Biden's administration, despite the continuation of most of Trump's tariffs. Biden's recent tariffs have also been met with criticism. Some argue that the increased prices of goods due to tariffs counteract the administration's environmental objectives. Others argue that industries protected by tariffs do not use the added profits to innovate and become more efficient, but instead lobby for more protection when tariffs or subsidies are set to disappear.

Thoughts on the Matter

The shift in trade policy from free trade to protectionism is a significant change in the US's approach to international trade. Both Trump and Biden have aimed to protect domestic industries and create jobs for working-class Americans. However, the effectiveness of these policies is a matter of debate. What are your thoughts on this shift in trade policy? Do you believe it has been beneficial for the US economy and workers? Share your thoughts and discuss this topic with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.